The Benefits of Using Services for Credit Repair in Austin, TX

In an article posted at Kiplinger.com last August 2012, Jessica L. Anderson says that FICO is not the only number that matters. She’s referring to credit scores that most people want to keep high in order to remain financially viable. Anderson rightly observes, however, that the only score that counts is actually the one your particular lender uses.

It doesn’t really matter what part of the U.S. you are in, whether it’s the city of Austin in Texas (TX) or the northern city of Anchorage, Alaska (AK). When you apply for credit, your lender can use its own customized system that may produce different scores. The problem is if there’s any item in your report that lowers your score, you may need to use services for credit repair in Austin, TX, which companies like Credit 360 Consulting offer, in order to fix it.

FICO stands for the Fair Isaac Corporation, the developers of the FICO credit scoring system. It is a type of credit score used by lenders to evaluate an applicant’s credit risk and whether to approve a loan. The system considers five areas to determine creditworthiness: types of credit used, payment history, length of credit history, current level of indebtedness, and new credit.

The scores range from 300 to 850 and you’ll need to score about 760 or better to get the best mortgage rates. However, the major credit bureaus—Experian, Equifax, and TransUnion—have their own scoring models and even invented a new system called VantageScore to compete with FICO. Most lenders still use FICO, but others have started implementing the VantageScore system that ranges from 501 to 990, with corresponding letter grades from A to F and the best score in the A range or above 900.

If your loan is denied or you get a poor credit rating, the lender must tell you the score system it used and the factors that affected your low score. This is the moment when you may need the help of companies that offer services for credit repair in Austin, such as Credit 360 Consulting. The problem may just involve updating and correcting some items in your credit report that could have adversely affected your rating.

The information in your credit files with the credit bureaus is constantly evolving, and so are your scores. Any mistakes can have a grave impact on your score and creditworthiness in spite of your having paid most of your obligations. A credit repair service provider will be able to keep your record clean and protect your interest.

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