Having trouble viewing this email? Click here
Innovative Credit Solutions
October 2011
Dear Chris,
Our newsletter will keep you updated on issues relating to consumer credit reporting
and inform you on what additional products are available for background screening.
The information will help you make better decisions about your customers, tenants, or
employees.
Credit scores from a consumer's prospective.
Give Yourself Some Credit
J.D. Roth / Liz Weston
Knowing What your credit report says about you - and how you rank - is critical to
maintaining financial health in your business and in your personal life.
Do you know your credit score? When was the last time you checked your credit
report? Your credit history plays a key role in your financial future, yet most people
are blissfully ignorant of how credit scores work - and how to improve them.
Companies like Fair Isaac use secret formulas to crunch data from your credit report,
comparing it to millions of other people. Such formulas spit out a single number that
helps banks and credit cards companies decide how much to lend you and what
terms. This number is your credit score (the most common from Fair Isaac, is called
the FICO score).
"A good credit score can make a big difference in a small-business owner's life" says
Liz Weston, author of Your Credit Score, Your Money & What's at Stake. She notes that
while there are lots of different credit scores out there, most lenders base their
decisions on your FICO score.
Pa
e 1 of 4
ews from Innovative Credit Solutions
5/8/2012htt
s://ui.constantcontact.com/visualeditor/visual
editor
review.
s
?a
ent.uid=110702717
...
So, how can you boost your score? There's only one way to improve your score
quickly, and that's if there is untrue negative information. If you have somebody
else's account showing up on your credit report and you get that taken off, for
instance, you're likely to see a quick improvement in your score. Other than that, it's
really a game of small improvements over time.
To build your score:
Pay off debt. The most powerful thing you can do to improve your score is to reduce
your credit utilization. The less you use your credit limit, the better the score.
Pay on time. If your FICO score is 780, a single late payment can drop it 100 points.
Limit new accounts. Opening new accounts has a small but noticeable effect on your
credit score. Keep new accounts to a minimum, especially if your planning a big
purchase (like a home or car).
Don't close old accounts. This may seem counterintuitive, but to maximize your
credit score, keep accounts open, but unused. If you have to close an account or two,
close newer accounts before old ones.
Keep tabs on your credit. Even small errors can hurt your score. Check your credit
report regularly and get problems corrected.
By law, each of the major credit reporting agencies - Equifax, Experian, Trans Union -
has to let you review your credit report for free once a year. You can get reports from
all three at once, or you can stagger requests. The website to obtain the free reports
is www.annualcreditreport.com. Like it or not, your Financial future is affected by your
financial past. Even a mediocre credit score can cost you tens of thousands of dollars
over your lifetime. Raising your credit score is pure profit.
Not Enough Credit to Generate a FICO Score?
Consumers that have limited or no credit:
One in four adults has either no credit history or not enough active credit to generate a
FICO score, according to estimates from FICO, the company that pioneered credit
scoring.
Many times, consumers with no credit history are new to the world of credit. They can
find themselves in a Catch-22 scenario, says Jennifer Tescher, president and CEO of
the Center for Financial Services. "You need to have a credit history to get credit," she
says. "And you need to have credit to build (a) credit history. "A "thin file" means they
don't have much of a track record with credit. Either they have only a few accounts,
or their credit is relatively new, or both, says Maxine Sweet, vice president of public
education for Experian. While "thin file" consumers have passed the initial hurdle, they
could still "have a much harder time" qualifying for certain credit products, such as
credit cards or "instant" in-store
Some of the groups at risk for no credit or a thin file include young adults, the elderly
(if they haven't used credit in awhile), new immigrants and people who avoid credit. If
someone is working to establish credit they should go slow, be very selective in
applications and nurture existing accounts. Never pay late, and -- with credit cards --
keep balances reasonable. With a thin file, even small mistakes can make a big
difference in the score, says Ethan Dornhelm, principal scientist with FICO, which
developed the FICO score.
Pa
e 2 of 4
ews from Innovative Credit Solutions
5/8/2012htt
s://ui.constantcontact.com/visualeditor/visual
editor
review.
s
?a
ent.uid=110702717
...
How to get a perfect credit score
by Jeanine Skowronski
There are certain things that we discover are just illusions as we grow up: Santa
Claus, the Easter Bunny and the Fountain of Youth are a few.
However, much like Bigfoot, one myth persists well into adulthood -- the perfect credit
score. Some swear they've seen it, but others think it's impossible.
There really is such a thing, and about a million Americans have one. If you want to
join that elite club, get started now (the age of your credit counts).
"Never in my life have I met anyone with an 850 credit score," Bruce McClary of
Clearpoint Credit Counseling Solutions, who has worked in the credit industry for
years. According to FICO, the company that designed our current credit model, these
overachievers are out there. Craig Watts, a spokesman for FICO, says that while most
people score in the middle to low 700s on their credit scale, less than 1% of the U.S.
population (about 1 million people) do, in fact, net a full score of 850.
"They tend to be more conservative and a little older," Watts explains. He adds that
these individuals also tend be rather humble, which may explain the near-mythic
status they have inadvertently achieved. We don't get too many of them in our
forums," he admits. "They aren't the type of people who stand up on a bus and tell
everyone they scored an 850."
People who don't share their scores aren't likely to share their secrets for attaining
them either, which is unfortunate, considering that the credit elite obtain the lowest
annual percentage rates, get the best credit card rewards programs and qualify more
readily for large loans. It's a noble goal to try to achieve," McClary says. However, he
explains that you don't need to reach perfection to be considered among the credit
elite. "In reality, you don't have to have an 850," says John Ulzheimer, a former FICO
employee now with Credit.com. Those with a FICO score above 760, he says, are
typically privy to the same benefits as those with perfect credit. Of course, a score
that high isn't easy to achieve either. To reach the top tier you have to master the
basics -- maintaining positive payment history and a low debt-to-credit ratio.
Business Reports
The Experian Business Credit Report consists of
general business information and presents a current,
comprehensive, and objective picture of how a
business handles its financial obligations.
The report includes trade payment
information, public record, legal, and company
background data, which conveys not only a
company's ability to pay, but its willingness to pay.
Trending sections and historical payment
information indicate how a
business' payment performance has evolved over
time.
We are available to help - contact us at 800-345-2746 or e-mail questions to
info@icscredit.com.
Pa
e 3 of 4
ews from Innovative Credit Solutions
5/8/2012htt
s://ui.constantcontact.com/visualeditor/visual
editor
review.
s
?a
ent.uid=110702717
...
Thank you for your business.
Chris Bane
Innovative Credit Solutions
$ 25.00 Refer a colleague / business
and get a gift card if they become a
member.
Offer Expires: December 30, 2011
Forward email
This email was sent to cbane@icscredit.com by cbane@icscredit.com |
Update Profile/Email Address | Instant removal with SafeUnsubscribe™ | Privacy Policy.
Innovative Credit Solutions | 1009 Ferguson Street | Columbia | SC | 29201
Pa
e 4 of 4
ews from Innovative Credit Solutions
5/8/2012htt
s://ui.constantcontact.com/visualeditor/visual
editor
review.
s
?a
ent.uid=110702717
...