credit expert, hazel valera spotlights the wrong/right strategies for credit repair

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Page 1: Credit Expert, Hazel Valera spotlights the Wrong/Right Strategies for Credit Repair

8 out of 10 top banking institutions now using Vantage 3.0 Credit scoring model According to Hazel Valera, Exec Dir of Clear Credit Exchange, consumers are familiar with the FICO credit score but few have heard about Vantage, an updated credit scoring model. The three credit bureaus collaborated on Vantage, and seemingly made it easier for consumers to qualify for credit. It’s still too soon to realize a big impact, but with the recently updated Vantage 3.0, more consumers can easily boost credit scores and qualify for better interest rates. Bigger Incentive to Re-build Credit Scores Most consumers are unaware of the biggest impact: Vantage offers a bonus for consumers by not figuring in paid-off debt collection accounts into the new scoring model; a real plus for consumers working to re-build their credit and a bigger incentive to cleaning up your credit. Credit Models: FICO vs Vantage

To determine the differences between a FICO score and Vantage let's look at how the FICO score is calculated:

35% based on payment history. More weight is applied to current payments compared with recent previous payments.

30% based on the amount of debt you are carrying 15% based on the length of payment history. The longer the history the better 10% based on recent research. The fewer inquiries you have, the better 10% based on the combination of credit. The more diversified (mortgage, car loan,

cards, etc.), the better

The Vantage score was developed by the three major credit reporting agencies as a better representation of today’s consumer credit. While the FICO score remains the most popular, the Vantage score is catching up. These scores run on a scale of 501-990 and issues a letter grade for measurement. Let's look at the components of the Vantage to see how it differs from the FICO.

28% based on payment history. Similar weight as FICO 23% based on the total available credit.

Page 2: Credit Expert, Hazel Valera spotlights the Wrong/Right Strategies for Credit Repair

09% based on the portion of your outstanding balances contributed by score. 09% based on the types of credit in the name and for how long you have held. 30% based on the number of accounts and the number of recent inquiries recently

opened. 1% based on the total dollar amounts you could use.

How Does Vantage Help Consumers?

All the economic strife consumers have dealt with, through no fault of their own, such as Hurricane Katrina, Hurricane Sandy, and other natural disasters that ultimately dealt a blow to credit scores can be stricken from the score. In other words, lenders can give you a break and negate the negative mark from the overall score, if it was due to a no-fault event. They have this option now.

There are many ways consumers can re-build credit, in many cases within 6 to 9 months, but it requires commitment. Contact Hazel Valera for a credit consultation and learn solutions to your debt problem.

1743 Park Ave

Ste 149

San Jose, CA 95126

(408) 766-4223