Post Number: 1361
|Posted on Thursday, September 11, 2003 - 06:37 pm: ||
On 8/2/03 I got my PrivacyGuard report:
ConsumerInfo.com (PrivacyGuard) utilizes the worthless CreditExpert (Experian) credit score. The explanations appear to have been written by some kid or maybe they outsourced to a foreign country with cheap writers.
It's hard to imagine more useless reading, but there is some entertainment value. These score factors have NOTHING to do with the Fair Isaac scores, and the only purpose of this CreditExpert score is to suck money from YOUR wallet into THEIR bank accounts.
My comments about MY PrivacyGuard score explanations in [bue brackets]:
About your Credit Score:
Your credit scores are based on the information in your credit bureau reports. The majority of CreditXpert Credit Scores(tm) are between 350 and 850. Higher scores are better, because they increase your chances of getting the loans you want. Keep in mind that when lenders evaluate a credit application, credit scores are not the only factor they use in making their decision. They usually ask for additional information (such as income and monthly payments) to determine your ability to repay the loan.
What your Credit Score means:
Thanks to your high CreditXpert Credit Score(tm), you are likely to get the better offers from lenders, whether for an auto loan, mortgage, or personal loan. However, this may not be true for credit card offers, because you may receive better interest rates and higher credit limits if you had a higher score. You can improve your credit score by making sure you always pay your bills on time. [Not a single late payment on my report. DUH!] Also, the additional information you provide as part of your credit application, such as income and monthly payments, will be important in determining whether you get the best offer, or just a good one.
What this Means to You:
Both negative and positive factors influence your credit score. The most important factors of each are listed below, in their order of importance. Remember, these factors vary in how strongly they impact your credit score. For example, if you have a very high credit score, the negative factors in your analysis are likely to have a small impact. The same is true for positive factors if you have a very low credit score.
What factors lower your credit score:
Payment history : In the past, you have missed payments or were derogatory on an account, or you have had a negative public record.
This is making your score lower. [Brilliant writing] Missing payments is a negative factor. [I didn't miss any payments!] Some cases are worse than others. If you have not missed any payment recently, lenders may think you are, or have become, responsible and do not, or will no longer, miss payments. [More phenomenal writing!] Lenders realize that many people occasionally miss a payment or pay late. [How interesting, especially since I don't have any late payments.] Therefore, missing payments on one account may not be as harmful as missing payments on many. [Wow, I'm amazed!] Similarly, missing a single payment may not be as harmful as missing several consecutive payments. [Would you have guessed that?] Note that many lenders consider missing 3 or more consecutive payments to be an indication that you may never repay them. [Really?] Finally, it may not be as harmful to miss payments on accounts with low balances as it is on accounts with high balances, because lenders stand to lose less money if they remain unpaid. Too funny - and not true!]
Bankruptcies : You have one or more bankruptcies listed in your credit report.
This is making your score lower. [Absolutely BRILLIANT writing.] Any bankruptcy record in your credit report is a seriously negative factor. [Would you have thought so?] However, a bankruptcy is less harmful to your credit score if it occurred many years ago because lenders may consider that you have regained control over your financial responsibilities. In any case, bankruptcies will very significantly affect your ability to get new credit accounts, and if you do get them they will likely involve a deposit and/or high fees and interest rates. Note that bankruptcy records on credit reports are usually removed 7 to 10 years after the filing date of the bankruptcy. This will likely have a positive effect on your credit score. [Likely?]
[This entire paragraph on bankruptcy is idiotic! As long as you re-establish credit, you can get the lowest mortgage rates after only 2 years from discharge.
The scores are important for most loans, and you get the scores by disputing INCORRECTLY reported discharged accounts, by re-establishing credit, having a low B/L ratio and few inquiries. 700+ for the "real" Fair Isaac scores is not unusual 2 years after discharge. The hardest part is keeping incorrect reporting off your credit.]
Length of credit history : On average, the age of your account(s) is 4 years and 8 months.
This is making your score lower. Having had credit accounts for a long time is a positive factor because your credit history allows lenders to evaluate how you typically use credit and repay your debts. Credit reports with approximately 30 years of history are considered optimal. Meanwhile, up to 7 years of history may be considered short, and less than 3 years of history is often considered too little. It is worth noting that your accounts may have been open longer than your credit reports suggest, as lenders can be slow to report new accounts to the credit bureaus. What matters is how long your accounts have been recorded in your reports. [This is absurd and absolutely NOT true! The date when the account was OPENED is the important date - what morons.]
What factors raise your credit score:
Credit applications : You did not apply for credit in the past 6 months, as recorded in this credit report.
This is making your score higher. Applying for credit many times within a short period can hurt your credit score. When you apply for any type of credit (such as an auto loan, credit card, department store card, or mortgage), the lender considering your credit application checks your credit history. This is recorded in your credit report as a "hard inquiry." Although inquiries are an unavoidable result of applying for credit, lenders dislike seeing many within a short period (such as 6 months). This is because they do not know whether you are "shopping" for the best offer, or if you are desperately trying to get credit because of financial trouble. Therefore, try to limit your comparison to a small number of lenders when "shopping" for the best offer.
Payment history : Last reported month, you paid 100% of your accounts on time.
Lost or stolen, transferred, or sold accounts may be excluded from this factor.
This is making your score higher. Missing payments is a negative factor. Some cases are worse than others. If you have not missed any payment recently, lenders may think you are, or have become, responsible and do not, or will no longer, miss payments. Lenders realize that many people occasionally miss a payment or pay late. Therefore, missing payments on one account may not be as harmful as missing payments on many. Similarly, missing a single payment may not be as harmful as missing several consecutive payments. Note that many lenders consider missing 3 or more consecutive payments to be an indication that you may never repay them. Finally, it may not be as harmful to miss payments on accounts with low balances as it is on accounts with high balances, because lenders stand to lose less money if they remain unpaid.[Didn't I just read that above???? They've just got NOTHING to say!]
Credit accounts : You have 4 credit card account(s) listed in your credit report.
This only includes open accounts.
This is making your score higher. Having accounts listed in your credit reports is a positive factor because the accounts' payment history shows lenders how you pay your bills. However, having too many accounts may be considered a negative factor because lenders worry that you are spending (or preparing to spend) beyond your means, even if you have never missed payments. Also, if you do not currently have credit, getting your first few credit cards may be difficult and may involve high fees, high interest rates, and low credit limits. Note that finance trades (such as debt consolidation accounts) are often associated with troubled credit, and may therefore be considered a negative factor.
[I've rarely read so much misinformation. Many people read the remarks on having credit available and CLOSE accounts. It is not true that many open accounts are bad - you have to have 10 or more revolving accounts and it doesn't matter whether they're open or closed. CLOSING accounts can ONLY hurt you!
I have NEVER seen a "too many accounts" Fair Isaac factor for a score below 700. But I've seen MANY MANY low scores because they didn't have enough credit available (High B/L ratio.)]
It's obvious that they have NOTHING useful to say and just ramble on to waste some paper. Don't waste your time reading these scores.