Credit Reports

There is a new FICO scoring system in town that brings with it some improvements that potential borrowers just might enjoy. While it doesn't come with a fortress of bells and whistles, it does have a few benefits that can help your FICO score improve some.

Why Make Changes?

You may be wondering why there is a new FICO scoring system. It seems that Fair Isaac, the company that develops the formula for the FICO score, recognized the need to assist individuals who had fallen into the subprime category with scores in the 600s or below. Because there are so many more people resting in this category as a result of job loss and foreclosure, the company decided to forgive some mistakes that have been and are being made in an effort to help raise scores.

What Are the Improvements?

Now let's get to the nitty-gritty. So just what are the improvements that have been made? Let's take a look:

• Lower collection accounts forgiven. Where before you may have found a $60 cable bill or $20 video rental fine on your credit report, now anything under $100 will be forgiven. This should make a huge difference for those who may have overlooked the fact that they owed a small bill only to have had their FICO score lowered in the past.
• One-time missed payments will be overlooked. In the past, if you went on a trip and forgot to make a credit card payment, it would hit your credit report in a heart beat. However, with the new FICO scoring system, you will have a chance to make this mistake once. Just keep in mind that if it happens again, youll suffer more repercussions than you would have previously.
• Different denominations will be viewed differently. Previously, owing $100 or $1,000 would not make a difference in the impact on your credit report. However, with the improvements made, you will suffer less for smaller denominations.

One thing to note about these changes is that they won't be implemented for a while but they are in the works, and that's good news. So if you're looking for ways to improve your FICO score, the new FICO scoring system may just be a way to help.

In these trying times of reduced credit and liquidity, consumers are becoming increasingly aware of how important their credit reports are. Credit scores are often considered the gauge of your financial health - and this affects the willingness of financial institutions to provide you with a low rate loan. If you are fully invested in improving your credit score, you need to know that a negative item on your credit report can follow you around for more than seven years!

On average, negative credit information should automatically drop off your credit report after seven years time, and after you've payed off the debt. However, that is not always the case. Consumer reporting companies can a tap into:

• Chapter 7,11, and 12bankruptcies from 10 years after the filing date
• Unpaid judgments against a consumer for 10 years historically
• Accuratenegative information for seven years
• Chapter 13 bankruptcies remain for seven years from the date discharged for a maximum of 10 years
• Tax liens remain for seven years from the date filed
• Unpaid tax liens will will remain indefinitely
• Collection account remain for seven years from the filing date
• One missed payment can stay on one's credit account for seven years
• Inquiries remain on your credit report for two years but only affect your credit score for 12 months time
• Active positive information can remain on your credit report indefinitely

All the less than favorable marks are supposed to automatically drop off during the aforementioned time period, however only time will tell if that is accurate.If you have been working diligently for years to clean up your credit history and are still have bad credit problems, contacting the main credit bureaus may be able to clear up your credit history. You can also use our partner Go Look Online for credit repair services if you are unable to proceed on your own.

Have you checked your credit report recently? How long did negative credit items stay on your credit report?

Very often, settled accounts can remain on a credit report for several years. The good news is that there are ways to have these accounts removed you just have to know what to do.

Why They Are Still There

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Why Are They Doing...

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