Welcome to Credit ABC's

A FICO® Score is a credit score developed by the Fair Isaac Corporation (FICO®), which is widely used by lenders to evaluate an individual's creditworthiness. It provides a numerical representation of a person's credit risk based on their credit history. Here are key points to understand about FICO® Scores:

• Calculation: FICO® Scores are calculated using proprietary algorithms that consider information from credit reports provided by the three major credit bureaus: Equifax, Experian, and TransUnion.
• Range: FICO® Scores typically range from 300 to 850, with higher scores indicating lower credit risk (i.e., a higher likelihood of repaying debts).
• Factors: The score is determined based on several factors, including:
  • Payment History: Whether you've made payments on time.
  • Credit Utilization: The amount of credit you're using compared to your total available credit limits.
  • Length of Credit History: How long you've had credit accounts open.
  • Types of Credit: The mix of credit accounts you have (e.g., credit cards, loans).
  • New Credit: Recent credit inquiries and newly opened accounts.
• Importance: FICO® Scores are crucial as they play a significant role in determining whether you qualify for loans, credit cards, mortgages, and other forms of credit. They also influence the interest rates and terms you may receive.
• Updates: FICO® Scores are updated periodically based on changes in your credit report data. Lenders may request updated scores when evaluating loan applications.

Understanding your FICO® Score allows you to assess your credit health, take steps to improve it if necessary, and make informed financial decisions. It's important to regularly monitor your score and credit reports to ensure accuracy and to detect any signs of identity theft or errors promptly.

Credit reports from the major credit bureaus (Equifax, Experian, and TransUnion) are typically updated on a regular basis, but the exact timing can vary. Here are some key points regarding the frequency of credit report updates:

• Monthly Updates: Creditors typically report account information to the credit bureaus once per month. This includes information such as balances, payment history, and new account openings or closures.
• Varied Reporting Times: Each creditor may report to the bureaus at different times throughout the month. As a result, updates to your credit report can occur at different intervals for different accounts.
• Credit Inquiries: Credit inquiries (requests for your credit report or score) may also appear on your credit report shortly after they occur, depending on the type of inquiry (hard inquiry vs. soft inquiry).
• Updates Due to Disputes or Changes: If you dispute information on your credit report and the investigation results in a change, the credit bureau must update your report accordingly.
• Requesting Updates: You can request a free copy of your credit report once every 12 months from each of the three major credit bureaus through AnnualCreditReport.com. Some services, including myFICO, provide more frequent access to your credit reports and scores for a fee.
• Real-Time Monitoring: Some credit monitoring services offer real-time updates or alerts for significant changes to your credit report, such as new accounts opened or missed payments reported.

It's essential to regularly monitor your credit reports to check for accuracy, detect any unauthorized activity or errors, and ensure your credit information reflects your financial behavior accurately. By staying informed about your credit reports, you can better manage your credit health and take proactive steps when necessary.

Protecting your credit from identity theft is crucial in today's digital age. Here are some essential steps you can take to safeguard your credit:

• Monitor Your Credit Reports: Regularly check your credit reports from all three major credit bureaus (Equifax, Experian, and TransUnion). You're entitled to a free copy of your credit report once every 12 months from each bureau through AnnualCreditReport.com.
• Consider Credit Monitoring Services: Subscribe to credit monitoring services that provide alerts for significant changes to your credit report, such as new accounts opened or inquiries made.
• Place Fraud Alerts: Consider placing fraud alerts on your credit reports. This notifies creditors to take extra steps to verify your identity before opening new accounts in your name.
• Freeze Your Credit: Consider placing a credit freeze (also known as a security freeze) on your credit reports. This restricts access to your credit report, making it more difficult for identity thieves to open accounts in your name.
• Use Strong Passwords and Security Measures: Protect your online accounts with strong, unique passwords. Enable two-factor authentication (2FA) whenever possible.
• Be Cautious with Personal Information: Be cautious about sharing your personal information, especially online and over the phone. Only provide sensitive information to trusted sources.
• Shred Documents: Shred documents containing personal and financial information before disposing of them, especially pre-approved credit offers and statements.
• Be Vigilant for Phishing Scams: Be aware of phishing scams that attempt to trick you into revealing personal information. Verify the legitimacy of emails, messages, or calls before responding or clicking on links.
• Monitor Financial Accounts Regularly: Review your bank and credit card statements regularly for unauthorized transactions. Report any suspicious activity to your financial institution immediately.
• Educate Yourself: Stay informed about common identity theft tactics and how to protect yourself. Consider attending workshops or seminars on identity theft prevention.

By taking these proactive measures, you can significantly reduce the risk of becoming a victim of identity theft and protect your credit and financial well-being. Regular monitoring and quick action are key to minimizing potential damage if identity theft does occur.

Your FICO® Score is influenced by several key factors. Here's a breakdown of the most important ones:

• Payment History (35%): This is the most significant factor. It includes whether you’ve paid your bills on time. Late payments, bankruptcies, and collections can significantly lower your score.
• Credit Utilization (30%): This is the ratio of your current credit card balances to your credit limits. A lower credit utilization ratio (ideally under 30%) is better for your score. High credit utilization indicates a higher risk of default.
• Length of Credit History (15%): The longer your credit history, the more reliable you appear to lenders. This factor looks at how long your accounts have been open and the average age of all your accounts.
• Types of Credit (10%): Having a variety of credit types (credit cards, mortgages, auto loans, etc.) shows that you can manage different kinds of credit responsibly. It’s best to have a mix of both installment loans and revolving credit.
• New Credit (10%): This includes the number of recent inquiries made into your credit report and any new credit accounts you’ve opened. Opening too many new accounts in a short period can negatively affect your score.

By understanding these factors, you can take actions to improve or maintain your FICO® Score. Managing your payments, keeping your credit utilization low, and maintaining a healthy credit mix are key strategies to improve your score over time.

No, checking your own credit score through myFICO is considered a soft inquiry and does not impact your credit score.

Soft inquiries occur when you check your own credit report, or when a company checks your credit for non-lending purposes, such as for pre-approved credit offers or background checks. These do not affect your score in any way.

In contrast, a hard inquiry happens when a lender or financial institution checks your credit report as part of a loan application process. Hard inquiries may have a small, temporary effect on your credit score.

So, feel free to check your FICO® Score as often as needed to monitor your credit health without worrying about it impacting your score.

If you find errors on your credit report, it's essential to take action right away. Here's what you should do:

1. Review the error carefully: Double-check the information that's incorrect. Common errors include incorrect personal information, accounts that don't belong to you, incorrect account statuses, or outdated information.
2. Gather supporting documentation: Collect any documents or records that support your claim. This could include bank statements, payment receipts, or letters from creditors.
3. Initiate a dispute: You can dispute the error directly with the credit bureau that reported it. The major bureaus (Equifax, Experian, and TransUnion) allow you to file disputes online through their websites.
4. Provide details: When filing a dispute, clearly explain why you believe the information is incorrect, and include any supporting evidence you have.
5. Follow up: After you file a dispute, the credit bureau typically has 30 days to investigate and resolve the issue. Monitor your credit report to ensure the correction is made. You’ll also receive updates on the progress of your dispute.
6. Check your rights: Under the Fair Credit Reporting Act (FCRA), you have the right to dispute inaccurate or incomplete information. If the bureau doesn't resolve the error in your favor, you can escalate the matter to the Consumer Financial Protection Bureau (CFPB) or seek legal assistance.

By taking these steps, you can ensure your credit report is accurate, which is crucial for maintaining a healthy credit score.

Tip: You can also monitor your credit reports regularly using myFICO to stay on top of any errors and address them promptly.

Negative information, such as late payments, collections, and bankruptcies, typically stays on your credit report for several years. Here's a breakdown:

• Late Payments: Most late payments can stay on your credit report for up to 7 years from the date of the missed payment.
• Collection Accounts: Accounts sent to collections usually stay on your credit report for up to 7 years from the date of the original delinquency.
• Bankruptcies: A Chapter 7 bankruptcy can remain on your credit report for up to 10 years from the filing date. A Chapter 13 bankruptcy may stay for 7 years, as it is usually discharged after that period.
• Foreclosures: A foreclosure can stay on your credit report for up to 7 years from the date it was finalized.
• Judgments: Civil judgments can stay on your credit report for 7 years, although they may be removed sooner if paid.
• Tax Liens: Unpaid tax liens can stay on your credit report indefinitely unless paid off. Once paid, they may be removed after 7 years.

Important: Negative information doesn't necessarily mean your credit score will remain low for the entire duration. Its impact on your score diminishes over time, especially as you work on improving your credit habits.

It's also a good idea to regularly check your credit reports for any outdated or incorrect negative information, as it should be removed after the specified time frame.

Yes, you can cancel your myFICO subscription at any time. Here's how:

• Contact Customer Support: Reach out to myFICO's customer support team via their website or through the contact details provided in your account settings.
• Online Account Management: You may also be able to manage your subscription directly through your myFICO account settings. Look for options under "Billing" or "Subscription."
• Timing: Cancelling your subscription means you will no longer be charged for the next billing cycle, but you'll still have access to your account and benefits until the end of the current billing period.

If you decide to cancel, be sure to confirm that your cancellation has been processed, and check for any final charges or refund eligibility, depending on your billing terms.

Yes, myFICO takes the security of your personal and credit information very seriously. To ensure your data is protected, we implement the following measures:

• Industry-Standard Encryption: Your credit and personal information are encrypted using SSL (Secure Socket Layer) technology, which ensures that your data is transmitted securely over the internet.
• Secure Account Access: We provide secure login options, including strong password policies and two-factor authentication (2FA), to protect your account from unauthorized access.
• Data Protection: Your credit data is stored in secure, encrypted databases with limited access to authorized personnel only.
• Privacy Policies: We adhere to strict privacy policies to ensure that your information is only used for the purpose of providing you with services related to your credit score and report.

Your security is our top priority, and we are constantly reviewing and improving our security measures to stay ahead of potential risks.

If you don't have enough credit history to generate a FICO® Score, myFICO may not be able to provide you with scores at this time. FICO® Scores are based on your credit report, which requires a sufficient history of credit activity. However, here are some key points:

• No Credit History: If you haven't yet opened a credit account (e.g., credit card, loan), there may not be enough data to generate a FICO® Score.
• Building Credit: We offer educational resources to guide you through the process of building your credit responsibly. These resources can help you understand how to start using credit and how to improve your credit over time.
• Alternative Methods: In some cases, there are alternative scoring methods, such as FICO® Score 9 or FICO® Score XD, that may take into account non-traditional credit data like utility payments or rent history.
• Credit Builder Resources: You can explore credit-builder products, such as secured credit cards or credit-builder loans, to establish a credit history.

While you may not have a score right now, taking steps to establish a credit history will eventually lead to a FICO® Score. It's important to monitor your progress and continue building credit in a responsible manner.

FICO® Scores and VantageScores are both credit scores that lenders use to assess an individual's creditworthiness, but there are some key differences:

• Scoring Models: FICO® Scores are developed by Fair Isaac Corporation (FICO®), while VantageScore is developed by the three major credit bureaus: Equifax, Experian, and TransUnion. Both scoring models use proprietary algorithms to calculate credit scores, but they may weigh factors differently.
• Scoring Range: FICO® Scores typically range from 300 to 850, and VantageScores usually range from 300 to 850 as well. However, VantageScore has updated its model over the years to ensure its scoring range is consistent with the FICO® Score range.
• Factors Considered: Both scores consider similar factors such as payment history, credit utilization, and the length of credit history. However, VantageScore may place slightly more emphasis on recent credit behavior, while FICO® Scores might weigh older accounts and payment history more heavily.
• Popularity in Lending Decisions: FICO® Scores are more commonly used by lenders, including mortgage lenders and credit card companies, when making decisions about credit applications. VantageScore, while growing in usage, is less commonly used in large-scale lending decisions.
• Updates and Revisions: Both scoring models update periodically to reflect changes in the credit industry. For example, VantageScore 3.0 (released in 2013) and VantageScore 4.0 (released in 2020) introduced changes, such as incorporating medical debt more favorably. FICO® also periodically revises its models to adapt to evolving credit behavior.

While the two scores may differ slightly in how they calculate creditworthiness, both are used by various lenders to evaluate financial risk. It's important to understand both scoring models and monitor your credit reports regularly to ensure your credit score remains in good standing.

It’s important to monitor your credit score and reports regularly to stay on top of your financial health. Here are some key recommendations:

• Before Major Financial Decisions: Check your credit score and report before applying for credit, loans, mortgages, or making significant purchases. Lenders use these reports to determine your eligibility and interest rates, so knowing where you stand beforehand can help you prepare.
• At Least Once a Year: You’re entitled to a free credit report once every 12 months from each of the three major credit bureaus (Equifax, Experian, and TransUnion) through AnnualCreditReport.com. Review your reports for accuracy, and make sure no unauthorized accounts have been opened in your name.
• Regular Monitoring: To stay vigilant about your credit, consider checking your credit score more frequently, especially if you’re actively working to improve it or monitor for identity theft. Many credit monitoring services, such as myFICO, provide ongoing monitoring with regular updates to your credit reports and scores.
• In Case of Major Life Events: If you’ve experienced a significant financial or life event—such as a job loss, marriage, divorce, or large purchases—it’s a good idea to check your credit to ensure no errors or fraudulent activity have impacted your score.
• After Disputing Errors: If you’ve disputed inaccuracies on your credit report, follow up to confirm that the changes have been made and reflect on your credit reports correctly.

By checking your credit reports and scores regularly, you can detect issues early, improve your credit over time, and make better-informed financial decisions.