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Frequently Asked Questions
What is the FICO SCORE and what are the major components?

A credit score is a number between 300-850- generated by a mathematical formula- intended to predict the probability of you being 90 days late on a scheduled payment. There are a lot of Credit Scores on the market, but you should be most interested about the FICO score which is the most frequently used in any meaningful transactions. Fair Isaac analyzes tens of thousands of credit reports before they finalize the FICO scoring model and it is a very secretive, counterintuitive formula.

The FICO algorithm has 300 components scattered in 5 major component groups:
  • 35% - Payment History
  • 30% - Debt Ratio
  • 15% - Length of Credit History
  • 10% - Types of Credit
  • 10% - Number of Credit Inquiries

The Fico algorithm is owned by Fair Isaac Corporation. They continuously change and improve the mathematical formula. Unfortunately the implementation of many of the major changes takes years. So they may not immediately be apparent in our everyday lives.


The unexpected economical turndown and all the aftermath was not calculated into the algorithm and it created a devastating influence in the lives of many Doctors. Our goal is to help restore "the calm" in Doctors' practices.

Why do you have three different credit scores?

There are a few explanations for this question. First of all there are three national credit bureaus that report credit information- TransUnion, Equifax, and Experian.


The credit information contained in each of the 3 credit bureaus varies between each credit reporting agency. So they don't all contain the exact same credit information.


There are many creditors who do not subscribe and report to all three credit bureaus, but may only report to one or two. So there are accounts which may appear on one, but not on another credit bureau's reports.


Also, each of the 3 credit reporting agencies has asked Fair Isaac to develop a slightly different version of their original algorithm. That means even if the data is exactly the same for each credit bureau file, there would still be a score difference.


Not to mention the fact that there are many more mutated versions of the FICO algorithms used in the car sales, credit card, mortgage and many other industries.


How accurate the scores are?

According to the Government Accountability Office, 80-90% of credit reports have serious errors on them. Many of the mistakes are undetectable by the untrained eye. Even a trained credit analyst cannot find all the damaging elements at once. They sometimes become more apparent over a period of time. We usually find different levels of damaging components at different layers.

How can I get my FICO credit report?

The ONLY website where you can get a genuine FICO score is www.myfico.com. ALL other sites have a different score and none of them use the actual FICO algorithm. Many companies are selling FACO credit reports and false scores based on their own algorithms.


Requests for one's own FICO score at www.myfico.com is considered a personal inquiry and will not take points away from your credit score. You have to pay for your credit score at MYFICO.com but you get the genuine credit score and credit information so it may be worth it.

How can I get a free copy of my credit report?

By law, all consumers are entitled once a year to a free credit report from each of the three credit bureaus. Visit www.annualcreditreport.com to get yours for FREE. However, this report WILL NOT have your SCORE.

For how long will negative credit items stay on my file?

  • Late Payments (30–180 days): Can remain up to seven years from the date of the initial missed payment.
  • Audit all 3 national credit bureau reports.
  • Collection accounts: Remain up to seven years from the date of the initial missed payment that led to the collection (the original delinquency date). When a collection account is paid in full, it will be marked "paid collection" on the credit report. Paid collection does not disappear from your credit report. It can hurt your credit report as badly as unpaid collections. In some cases an arranged monthly payment with a collection company can restart the timeline on a collection account. Be aware of your rights before you take any steps regarding a collection account.
  • Charged-off accounts: Remain up to seven years from the date of the initial missed payment that led to the charge-off (the original delinquency date).
  • Closed accounts: Closed accounts are accounts that are no longer available for further use. Closed accounts with delinquencies remain up to seven years from the date they are reported closed. Positive closed accounts can remain ten years from the closing date.
  • Bankruptcy: Chapters 7, 11, and 12 remain for up to ten years from the filing date. Discharged Chapter 13 remains up to seven years from the filing date. Dismissed Chapter 13 Bankruptcy can stay on your credit for 10 years.
  • Accounts included in bankruptcy will remain for up to seven years from the date they were first reported delinquent.
  • Judgments: Remain up to seven years from the date the judgment is filed. Judgments can be re-filed and then re-reported.
  • City, county, state, and federal tax liens: Unpaid tax liens can remain fifteen years or sometimes indefinitely. Paid tax liens remain up to seven years from the paid date of the lien. However, there are legal means to delete IRS Liens from your credit reports.
  • Inquiries: Hard Inquiries (pulled by others) listed on your credit report will stay for two years. Hard Inquiries are only scoring against you for one year. Soft inquiries (pulled by you), such as employment or pre-approved offers of credit, will not harm your credit.

What's not supposed to be on my Credit Report?

  • Medical information (unless you give your consent).
  • Notice of bankruptcy (Chapter 11or 13) that is more than ten years old.
  • Debts (including delinquent child support payments) that are more than seven years old.
  • Age, race and marital status.

How Does My Credit Score Affect Interest?

Let's talk about credit, its role in your life, and why having a good credit rating is very important. The higher your credit score, the less interest you will pay. This applies to everything you buy, including credit card purchases, cars, and especially mortgages.


Improving your credit score should be a priority because it can free up tens of thousands of dollars otherwise wasted on interest payments. When you lower your interest rate and interest payments, it makes more money available to you to accelerate debt reduction, savings, or investments. Remember, if you are charged 9 % for an auto loan and your neighbor is charged 8 %, you will end up paying more for the same vehicle than he or she does.

What is the difference between your FICO score and other credit scores?

You might have heard the terms FICO Classic, FICO Risk Model, or BEACON. While they might sound like confusing terminology, in reality, they simply represent your credit score. Fair Isaac Inc., an applied Mathematics Company developed an arithmetic algorithm assessing data stored at the three national Credit Reporting Agencies (Equifax, Experian, and TransUnion) under your name. These algorithms provide a 3 digit number, a credit score that represents the risk lenders are taking in lending you money.

How many FICO algorithms are there?

The three national credit bureaus are TransUnion, Equifax and Experian.
TransUnion uses FICO Classic, Experian uses FICO Risk Model, and Equifax uses BEACON for your credit score.

What is your credit score?

Your credit score is an estimate of the risk of lending you money based upon a complex mathematical algorithm. Many lenders, banks, car dealers, and other financial institutions check credit scores frequently to assess the creditworthiness of a potential customer. Literally, billions of business decisions are made annually based on these scores.

What is the range of the FICO score ?

This FICO score can range between 300-850. Currently the average credit score in the United States is declining. The higher your score, the better it is for you, because it indicates you are less of a risk to a creditor. The higher score represents a higher probability the lender will receive his money back. This means there is a better chance that you can obtain credit on better terms.

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