Thursday, May 18, 2017

Changes are Coming to Your Credit Scores

Introducing VantageScore 4.0
Billed as “Cutting-edge technological advancements to deliver unmatched credit scoring accuracy” 

Beginning September 24, 2016. Fannie Mae underwriting process required TRENDED CREDIT DATA to be reported on credit reports.This was designed to better understand Consumer Behavior and more accurately Predict Risk.  
Trended Data is only being used by Fannie Mae and now Freddie Mac to better define consumer risk on Mortgage Loans. Other lenders are NOT using this Trended Data to make credit decisions and Trended Data is not being scored in the FICO and VantageScore scoring models currently.

Changes are Coming
This may all change this fall!  VantageScore in releasing a new version in the Fall of 2017 named VantageScore 4.0, in an effort to get more lenders to use their scoring model instead of using the FICO scoring models, especially by the Mortgage Industries. This will be sold as a better, and more accurate risk model for ALL lenders. 
This is based on the analysis that consumers with balances on their credit cards who pay minimum payments or who pay more but with an increasing balance are 3 to 5 times riskier that Transactional borrowers who pay off the balances each month. A consumer with decreasing balance will fair somewhere in the middle. 
This will potentially affect an ability to get credit limit increases, and, will increase lender's profitability. It may make it harder to get loans or, approval for new credit if you carry hefty balances, especially if they show that the balances are increasing.

New Rules for Reporting and Scoring
  • May eliminate medical collections accounts, tax liens, and public records.
  • Penalizes unpaid medical collections less than other types of unpaid collections,
  • Ignores unpaid medical collections less than six months old
  • Paid collections (including paid medical collections) are excluded in the VantageScore 4.0 model
  • 4.0 model leveraged machine learning techniques to better score consumers with sparse credit histories (allow an additional 30 – 35 Million Consumers to have credit scores)

At Credit Scoring Advisor we are the experts, specializing in Rapid Credit Repair for our clients. Our founder, Daniel Sater is a Nationally Recognized Credit Expert, Author, Public Speaker, and Educator. In addition, Dan trains and Coaches numerous Credit Repair Companies across the country, he is a Certified C.E. Instructor for the Real Estate Industry for their continuing education credit. Mr. Sater is the Chairman of the Education Committee for NACSO – the trade association for the Credit Repair Industry.  His last book, "The Top 20 Toxic Credit Mistakes" is available on the Credit Scoring Advisor website and Amazon Kindle. He can be reached at 631-465-9565 or by e-mail at
Better Knowledge – Better Tactics –Better Results

Friday, June 10, 2016

Beware of the Credit Expert!

By Daniel Sater, Nationally Recognized Credit Expert and owner of Credit Scoring Advisor 631-392-8685

You Need to Know What You Are Getting.
I’ve been in the finance and credit industry since 1997. I have seen all types of people, of companies, and of claims of being the best – that they ARE the EXPERT!

On the surface it is hard to imagine that everyone that claims to be an expert, is an Expert. It’s a little like every supermarket selling Prime Beef when in fact only 5% of all beef sold is actually PRIME! It is important what qualifications are needed to be an expert and what benefits you can expect from someone being an expert. Few experts really have the credentials to truly be what most people would call an expert. There are some guidelines you can use to be reasonably certain that you are dealing with people who have the knowledge, talent and dedication to do the best for you.

What Is the Definition of an Expert?
I have a simple definition of an Expert. An Expert is...someone who knows more than you do about a topic! It is really very simple. If someone knows more than you, and knows the buzz words in the industry, and have a gift of gab, most people will regard them as an expert, even if what they say is wrong! You have no way of telling the difference.

Here are 10 Things You Need to Ask to Determine if You Are Dealing with a True Expert.
1)      What exact training or course of study have they taken?
2)      Do they have a continuous education program?
3)      Do they have a permanent office and address that they work out of?
4)      Do they do their own processing and custom letter writing or do they use a service that does this for them?
5)      How long have they been in business? Are they doing this full time?
6)      What proof of results do they have to show you? (Testimonials and actual results documents.) It is easy to get letters of praise from former clients; do they have letters of recommendations from people in their industry also?
7)      Do they belong to an Industry Trade Association?
8)      Are they recognized for anything in their industry?
9)      In talking with them, do you see an excitement, a passion, and pride for the work they do?
10)  Have they published a book on the topic or had articles written about them or quoting them?

Asking these questions should serve you well. If you ask technical question and feel uneasy about the answers or how they answered maybe it would be best to research other companies.
A true expert will be easy to look up on Google, Facebook and other social media.

Thursday, November 13, 2014

It Is Not Always the Professional Identity Thief You Need Worry About

Many consumers are surprised and shocked when they apply for credit and the lender denies them credit due to negative information reporting on their credit report. It’s even more traumatic if they learn that the negative accounts are not even theirs! This is usually their first real introduction into the world of Identity Theft.

So many people are afraid to see what is on their credit report or perhaps convinced that their credit is in perfect shape. According to the Consumer Federation of America, 41% of consumers haven’t even pull their credit report. Too many consumers equate looking at their credit report like a journey to the dentist. They just don’t want to hear bad news. But acting like an ostrich doesn’t make things go away, and, it set you up for some unpleasant surprises.

There are three reasons to check your credit report AT LEAST once every year.
1.      Credit mistakes and data entry errors
The Federal Trade Commission did a study indicating that in excess of 40,000,000 consumers will have errors on their credit reports.
2.      Mixed Files
Due to the method that the credit bureaus compile your credit report, someone else’s credit information can easily be reporting on your credit report. The 13 bits of information they search for don’t even have to match exactly!
3.      Identity Theft
We have all heard of the damage professional identity thieves can do to you and the time, expense and effort it takes to fix you good name. But, there is another group of people that cause the bulk of Identity Theft…

It’s the people who are closest to you!
I know you love your mother, your father, your brother, your sister, your kids, your aunt, your uncle, your cousins, your niece, your nephew, your grandparents, your grandkids, and, your friend who stayed with you for three weeks last year. But these are the people closest to you. They know your name, your address, your date of birth and have easy access to your credit cards and social security number. Unfortunately, these are the ones that are most likely, when under-the-gun, will use your identity. In my credit repair practice, I see ten times the amount of Identity Theft by friends and relatives than I do from the profession thieves. This type of Identity Theft can be harder to correct.

We ARE the experts in Credit Repair. Our founder, Daniel Sater, is a Nationally Recognized Credit Expert, Speaker & Author, and a Certified FICO Professional who also trains and coaches numerous Credit Repair Companies across the country and speaks at industry conferences. We are the people that other credit repair experts go to for answers.

With Credit Scoring Advisor you get personalized, not computerized service from someone who will fight for you to improve your credit profile. Dan handles every file personally to ensure the best results for our clients. You have continued access throughout our process to a recognized credit expert. Better Knowledge – Better Tactics – Better Results  
We would love to hear from you, give us a call, 631-392-8685  
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