“My credit check stunned me! I finally scored deletions and expected my scores to explode but they didn’t. Why? Why didn’t I get the bump everybody talks about?” –Dave M., Odessa, TX.
Great question, Dave. Few people understand credit scoring. Not knowing is COSTLY and DANGEROUS!
Please pay attention as I answer Dave’s question–you might just discover Dave’s situation is kinda similar to yours.
RULE #1: Scoring deletions is NOT what credit repair is *ALL* about! <gasp>
Not all bad credit accounts are the same. Therefore, you must understand…right now…that credit repair is NOT just about scoring deletions on collections, charge-offs or even judgments.
I get this question all the time, as people get frustrated when they score deletions but their scores don’t change; or worse, their scores actually go down instead of up.
What? …scores go DOWN! How?
THE ‘REAL’ CREDIT REPAIR SECRET
1) Your scores look at the most recent date in any given category of bad credit accounts.
If you have a 2007 collection and a 2000 collection and the 2000 collection gets deleted, your score probably won’t change. You still have that most recent 2007 collection. A big part of your credit scores result from the most recent two years.
2) The scoring software uses about 10 different models to calculate your scores. Fair, Isaac & Co (FICO) created the scoring algorithm used by the BIG 3, and you’re not going to be able to sit down and calculate a point gain/loss if you do so and so.
For instance, you’d think that deleting a foreclosure would ALWAYS increase your scores, but that’s just NOT necessarily so.
Key Points:
- Do not be quick to pursue deletions of all bad accounts, especially older accounts. The “bad credit” status is not intense. The “length of your account history” is what’s important. Instead, get the account status reported FAVORABLY…not deleted.
- Do not think that everything on your accounts is weighted equally…it isn’t. Accounts less than TWO years old count the most.
As Dave shares, “My credit check often left me scratching my head, dazed & confused, until I discovered the shocking truth about credit scoring.”
You see, this is just one of the reasons I despise credit (dis)repair companies. They take your money and do NOT strategically plan your credit repair. They do NOT have a plan beyond firing off “rounds” of worthless dispute letters…..
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