How my FICO Score is calculated
The FICO® Score is calculated from several different pieces of credit data in your credit report.
Your FICO Score considers both positive and negative information in your credit report. Late payments will lower your FICO Score, but establishing or re-establishing a good track record of making timely payments will raise your score.
Let me begin by clearly stating that I am not an advocate of people not paying their bills.
You purchased a good or service. You have an obligation to pay. That said, people very quickly can run into a financial brick wall.
Unexpected things happen in life, and while we have every intention to pay our bills, we do not have the means due to whatever random something has gone wrong. While we are a credit repair company, we know that some of you need some advice and education, so we’ve provided some tips.
The creditor has a choice, you should contact them, tell them what is going on, and some of them will work with you and take whatever you can afford each month. As long as you pay that – they leave you alone. Some will not even report anything to the credit bureaus.
Typically, some creditors with CEOs making millions of dollars are heartless. They do not care. They want their money or turn that debt over to a collection agency that will hound you mercilessly trying to collect a debt.
First – know that you have rights. If you are getting phone calls at home, work, etc., write them a letter demanding they “cease and desist all phone calls regarding any matters they may have with you.” Please make sure you write that they have permission to contact you via U.S. Mail ONLY.
If you tell them that they cannot contact you, they may feel they have no choice but to sue you. So let them mail you. But no phone calls. This is Federal law. Upon receiving that letter, if they call you, the Federal Trade Commission will fine them $1000 per phone call. Send the letter certified, so you have proof they received it.
Once in the collection, a few years go by, and you are in better financial condition. Should you pay the collection on your report? I will just give you facts from the perspective of the credit bureaus and FICO score. You will ultimately decide – Collections To Pay or Not to Pay?
- If you pay, the negative trade line will remain on your credit report for seven years. So score-wise, no real benefit to pay.
- What is the statute of limitations for being sued for a debt in your state? Some state it’s three years, some more.
- Call the law firm and settle out of court for pennies on the dollar if you are sued. No harm, no foul.
- It drops off at the seven-year mark from the date of the first delinquency with the original creditor, not the date on the credit report.
Best Credit RX improves your credit score. Get a credit check. We are a credit repair company. If you are looking for the best way to repair your credit, starting with a copy of your credit report is your first step. We recommend using Best Credit Rx. We are a national company. We provide a free credit report, a copy of your credit score, or information about bankruptcy, credit repair, or identity theft. We can help you understand all these items:
- Credit Check
- Credit Rating
- Mortgage Pre-Approval
- and More
We answer your questions about:
- Credit Repair
- Identity Theft
- Short Sale
- Business Credit
We can even help you get approved for a mortgage. Best Credit Rx is an expert about the credit bureaus and credit scores (Experian, Transunion, Equifax, Innovis). Best Credit RX can help you resolve all your issues.