Tuesday, January 28, 2014


Repairing ones credit has always been a mystery to most people. Most of us have learned the hard way how quickly their credit can be damaged due to the smallest of credit mistakes. They soon realize that although their scores can drop quickly, it takes a long time to rebuild it back up, years in fact. Now, there is a new tool to help those needing a quick boost.

How Important are Credit Card to Your Scores?
One thing that most don’t realized is the importance that revolving credit has on their credit report. Having credit cards are scored by FICO under the Credit Utilization section of your credit report. Basically the scoring model looks at how much credit you have (credit limits) and how much you use. A great deal of the points earned are based on the ratio of your outstanding debt, as reported once a month, to your credit limits. You are scored on individual accounts, and, the total sum to total of your credit limits. According to FAIR ISAAC Corp., this area accounts for approximately (for the General Population) 30% of your total credit score. (Yes, this number can vary based on which of the ten scorecards you are placed in prior to a score being generated. More on that in another article.) Of this 30%, credit cards alone account from 10% to 20% of the TOTAL credit score, (depending on what else is on the credit report). The impact is less if you already have good credit or a number of active credit card accounts.

Installment Loans
Although installment loans are scored they make up a small percentage of the total points. This is due to the payments being fixed and paid down based on a schedule. No one expects you to pay off those loans at a more rapid rate.

The Impact of Credit Cards on Your Credit Report
What does have a major impact are credit cards. They are unsecured, and the usage is under the complete control of the consumer. High usage and low credit limits affect the scores negatively. The FICO scoring model looks for a consumer having, ideally, 2 or 3 cards to base the score on. If someone has no credit cards, or only one, the model has little to score and points are lost.

Unfortunately, many consumers fail to establish new credit after a bankruptcy, job loss, or other financial crisis thinking if they don’t have the cards to begin with, it can’t hurt them. But it does. This is why we became excited when a mid-western company started a new “merchant card” service. The problem with the merchant cards in the past was they seldom lasted very long. One credit bureau after another denied them the ability to report to their bureau. Some ended up reporting to only one bureau. This is little help for people needing to re-establish new credit. They have found a way to solve this problem. A “merchant account” reports to the credit bureau like a MasterCard or Visa but can only be used on that merchant’s website. We have seen jumps of 25 to 50 or 60 points for most of our clients and in some cases up to 100 points!

If you are interested in finding out all the particulars and apply for this card, e-mail us at info@CreditScoringAdvisor.com and we will e-mail the info to you and a link to the website.
We look forward to you having a better financial future.

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 companies 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