Apex Credit Services, LLC - Credit Repair

KNOW YOUR CREDIT SCORE

With all the misinformation surrounding FICO we thought we’d take the time to explain how most of their many models work.  Your credit score is a three-digit number that is used to predict how you will pay your bills. The score ranges from 300-850 and is calculated using your credit history information from your credit report.

When you make an application for credit, the creditor or lender uses your credit score to quickly make a credit/no-credit decision. This same decision can very well be made by simply viewing your credit report, but the credit score makes decision-making easier and less subjective.

While there are several different versions of the credit score, the most commonly used version is the FICO score. Developed by the Fair Isaac Company, the FICO score is used by many creditors and lenders to decide whether or not to extend credit to you.

Because some parts of your bill-paying history are more important than others, different pieces of your credit history are given different weights in calculating your credit score.

Even though the specific equation for coming up with your credit score is proprietary information owned by Fair Isaac, we do know what information is used to calculate your score.

Payment history is 35%

Lenders are most concerned about whether or not you pay your bills. The best indictor of this is how you’ve paid your bills in the past. Late payments, collections, and bankruptcies all affect the payment history of your credit score. More recent delinquencies hurt your credit score more than those in the past.

Debt level is 30%

The amount of debt you have in comparison to your credit limits is known as credit utilization. The higher your credit utilization – the closer you are to your limits – the lower your credit score will be. Keep your credit card balances at about 30% of your credit limit or less.

Length of credit history 15%

Having a longer credit history is favorable because it gives more information about your spending habits. It’s good to leave open the accounts that you’ve had for a long time.

Inquiries are 10%

Each time you make an application for credit, an inquiry is added to your credit report. Too many applications for credit can mean that you are taking on a lot of debt or that you are in some kind of financial trouble. While inquiries can remain on your credit report for two years, your credit score calculation only considers those made within a year.

Mix of credit is 10%

Having different kinds of accounts is favorable because it shows that you have experience managing a mix of credit. This isn’t a significant factor in your credit score unless you don’t have much other information on which to base your score. Open new accounts as you need them, not to simply have what seems like a better mix of credit.

Has a debt collector ever contacted you about a debt that you weren’t sure was yours? Under the Fair Debt Collection Practices Act, a federal law regulating debt collectors, you can request the debt collector to send proof of the debt. This process is called debt validation.

The Debt Validation Period

Within five days of its first communication to you, the debt collector is responsible for sending you a debt validation notice. This notice should be in writing letter letting you know you have the right to dispute the validity of the debt within 30 days. The FDCPA prescribes that the collector must include the debt validation notice in the initial communication.

So, if the debt collector’s first communication with you is by phone, you should receive a debt validation letter from them within five days.

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If the first communication is by letter, that letter might already include the debt validation notice; otherwise, you should soon get another letter including the notice.If you don’t dispute the debt in writing within 30 days, the debt collector has the right to assume the debt is valid. During the 30 day period, the collector can continue attempts to collect the debt from you until it receives your validation request.

Submitting a Validation Request

To be valid, your request for debt validation must be submitted in writing. You can dispute the entire debt, part of the debt, or request the name of the original creditor. After receiving your dispute, the debt collector cannot continue collection activity until it has provided you with the requested information if you requested validation within thirty days from you receipt of their initial communication.

Your debt validation letter should be sent in writing. It’s best to send the letter via certified mail with return receipt requested. This way, you have proof of the letter’s mailing and receipt by the debt collector. If you have to file a lawsuit against the debt collector, the certified and return receipts will help strengthen your case.

Sample Debt Validation Letter

The Collector’s Response

After receiving your dispute, the collection agency must send you proof that it owns or has been assigned the debt by the original creditor. Verification that you owe the debt and the amount of the debt needs to include documentation from original creditor (however, it is the debt collector who sends it to you). It is not enough for the collection agency to simply send you a printout of the amount owed.

If the debt collector does not verify the debt within 30 days, it is not allowed to continue collecting the debt from you nor can it list the debt on your credit report. Should the debt collector list the debt on your credit report, you can dispute the debt with the credit bureau. Sending the credit bureau a copy of your debt validation letter along with the certified and return receipts will help get the account removed from your credit report.

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FICO 08 Found to be Illegal

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DENVER (Map) - DENVER, Feb. 22 /PRNewswire/ — Fair Isaac Corporation (FICO) is the company which designs and implements the most universally accepted personal credit scoring model used today. It is commonly known as the FICO score. The three major credit reporting agencies, Equifax, Experian, and TransUnion, utilize a FICO model which considers “authorized user” accounts when generating a person’s credit score. This model is in compliance with the Equal Credit Opportunity Act (ECOA). The legislative intent and stated purpose of the ECOA was and remains in force to protect consumers from discriminatory and unethical practices in lending.

Nevertheless, FICO recently proposed a new scoring model, dubbed FICO ‘08, which will completely disregard authorized user accounts, as they appear on an individual’s personal credit file. This new scoring model is projected to adversely affect 41 million Americans with respect to their credit scores.

Let us be clear, the proposed FICO ‘08 scoring model is illegal, pursuant to the Equal Credit Opportunity Act. One can review the following pertinent provision of the ECOA and find this to be true:

(6) Credit history. To the extent that a creditor considers credit history in evaluating the creditworthiness of similarly qualified applicants for a similar type and amount of credit, in evaluating an applicant’s creditworthiness a creditor shall consider:

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(i) The credit history, when available, of accounts designated as accounts that the applicant and the applicant’s spouse are permitted to use …

As anyone can discern, the law clearly states that “any” account which an applicant is permitted to use must be considered. This certainly envelopes authorized user accounts. With that in mind, it is only reasonable to forecast a windfall of class litigation that very well may affect the bottom lines at the Fair Isaac Corporation, the credit reporting agencies, and any lending or banking institution that uses the new FICO ‘08 scoring model. This is why only one credit reporting agency was set to implement the changed model back in September 2007. The other two were going to sit back and wait for the fallout.

The reasons given for the so-called need for this change are many, but they are in essence a call for relief from the mortgage industry. After the sub-prime mortgage industry fell through the bottom, they needed an explanation for their shareholders. Rather than admit to the truth, which was that they were approving applicants with low FICO scores at 100% of a property’s value and at nearly 60% Debt to Income Ratios, they blamed a small niche of consumers who knew how to operate astutely under the FICO model to increase their scores within the confines of the law.

Equifax has stated that they will not use the model.  However, if the other two credit reporting agencies enact the change, it would not affect most consumers until sometime in mid 2008 if they apply the change in a retroactive nature. The fallout could be substantial as the changeover will undoubtedly exacerbate the ever worsening financial and credit positions of the average American consumer. An onslaught of class action lawsuits and wasted tax payer money will certainly follow as a result.

Companies like Apex Credit Services, LLC remain optimistic and do not foresee FICO ‘08 moving forward as proposed in light of its illegality and as such, they plan to continue to offer account trade lines to Americans in need of a legal credit score boost.

     - Created By:        APEX CREDIT SERVICES (http://www.apexcreditservices.com)

Apex Credit Services, LLC In The News For Tradelines

http://www.prlog.org/10052638-authorized-user-accounts-still-scored.html

Authorized User Accounts Still Scored

Apex Credit Services, LLC Dispells The Myth of FICO 08
Source: Apex Credit Services, LLC Feb 22, 2008 02:48:40

FOR IMMEDIATE RELEASE

PRLog (Press Release) – Feb 22, 2008 – Charleston, West Virginia

Feb. 22, 2008

J. Wade Barnette, Managing Member

Fair Isaac (hereinafter, “FICO”) is the company which designs and implements the most universally accepted scoring model today. It is commonly known as the FICO score. Today, the three major credit reporting agencies, Equifax, Experian, and Trans Union, permit FICO to apply models to their data. All consider “authorized user” accounts and are in compliance with the Equal Credit Opportunity Act (“ECOA”).

Nevertheless, FICO proposed in June of 2007 a new scoring model which would completely disregard authorized user accounts. It has not and may never happen. Equifax has recently stated that they will not allow FICO to apply this model to their data. The other two credit reporting agencies are set to “review” the model at some point in 2008 however, each and every request as to whether any credit reporting agency is going to permit this model to be applied to their data is garnering a more tenuous and ambiguous response.

Why, because this proposed model is illegal pursuant to the ECOA. One can review the following pertinent provision of the aforementioned Act and find this to be true:

(6) Credit history. To the extent that a creditor considers credit history in evaluating the creditworthiness . . . in evaluating an applicant’s creditworthiness a creditor shall consider:
(i) The credit history, when available, of accounts designated as accounts that the applicant and the applicant’s spouse are “permitted” to use . . .

As anyone can discern, the law clearly states that “any” account which an applicant is permitted to use must be considered. This certainly envelopes authorized user accounts. With that in mind, it is only reasonable to forecast a windfall of class litigation for any creditor who uses the aforesaid model.

In short, using this model just doesn’t make sense from a legal or business perspective. This is why FICO 08′ has yet to happen. In all honesty, we at Apex Credit Services, LLC cannot envision FICO 08’ moving forward as proposed in light of its illegality and as such, we will continue to offer our account tradelines in the spirit of the ECOA.

http://www.apexcreditservices.com

# # #

Apex Credit Services, LLC is a licensed, registered and bonded Credit Services Organization. Moreover, it is a proud member of the Better Business Bureau. Beyond its corporate mission, ACS, LLC is an advocate for consumer credit protection.

# # #

http://www.i-newswire.com/pr152832.html

(I-Newswire) - Charleston, West Virginia Feb. 22, 2008 J. Wade Barnette, Managing Member Apex Credit Services, LLC Fair Isaac ( hereinafter, “FICO” ) is the company which designs and implements the most universally accepted scoring model today. It is commonly known as the FICO score. Today, the three major credit reporting agencies, Equifax, Experian, and Trans Union, permit FICO to apply models to their data.  All consider “authorized user” accounts and are in compliance with the Equal Credit Opportunity Act ( “ECOA” ). Nevertheless, FICO proposed in June of 2007 a new scoring model which would completely disregard authorized user accounts.  It has not and may never happen. Equifax has recently stated that they will not allow FICO to apply this model to their data. The other two credit reporting agencies are set to “review” the model at some point in 2008 however, each and every request as to whether any credit reporting agency is going to permit this model to be applied to their data is garnering a more tenuous and ambiguous response. Why, because this proposed model is illegal pursuant to the ECOA. One can review the following pertinent provision of the aforementioned Act and find this to be true: ( 6 ) Credit history. To the extent that a creditor considers credit history in evaluating the creditworthiness . . . in evaluating an applicant’s creditworthiness a creditor shall consider: ( i ) The credit history, when available, of accounts designated as accounts that the applicant and the applicant’s spouse are “permitted” to use . . . As anyone can discern, the law clearly states that “any” account which an applicant is permitted to use must be considered. This certainly envelopes authorized user accounts. With that in mind, it is only reasonable to forecast a windfall of class litigation for any creditor who uses the aforesaid model. In short, using this model just doesn’t make sense from a legal or business perspective. This is why FICO 08′ has yet to happen.  In all honesty, we at Apex Credit Services, LLC cannot envision FICO 08’ moving forward as proposed in light of its illegality and as such, we will continue to offer our account tradelines in the spirit of the ECOA. http://www.apexcreditservices.com Apex Credit Services, LLC 2919 Shadyside Road Saint Albans, WV 25177 304-727-4818 If you have questions regarding information in this press release contact the company listed below. I-Newswire.com is a press release service and not the author of this press release. The information that is on or available through this site is for informational purposes only and speaks only as of the particular date or dates of that information. As some companies / PR Agencies submit their press releases once per week/month or quarter, make sure check the official company website for accurate release dates as our site displays the I-Newswire.com distribution date only. We do not guarantee the accuracy or completeness of information on or available through this site, and we are not responsible for inaccuracies or omissions in that information or for actions taken in reliance on that information.

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Apex Credit Services, LLC

Apex Credit Services, LLC Explores FICO 08′

Los Angeles-Long Beach, CA (1888PressRelease) February 23, 2008 - Fair Isaac (hereinafter, “FICO”) is the company which designs and implements the most universally accepted scoring model today. It is commonly known as the FICO score. Today, the three major credit reporting agencies, Equifax, Experian, and Trans Union, permit FICO to apply models to their data. All consider “authorized user” accounts and are in compliance with the Equal Credit Opportunity Act (“ECOA”).

Nevertheless, FICO proposed in June of 2007 a new scoring model which would completely disregard authorized user accounts. It has not and may never happen. Equifax has recently stated that they will not allow FICO to apply this model to their data. The other two credit reporting agencies are set to “review” the model at some point in 2008 however, each and every request as to whether any credit reporting agency is going to permit this model to be applied to their data is garnering a more tenuous and ambiguous response.

Why, because this proposed model is illegal pursuant to the ECOA. One can review the following pertinent provision of the aforementioned Act and find this to be true:

(6) Credit history. To the extent that a creditor considers credit history in evaluating the creditworthiness . . . in evaluating an applicant’s creditworthiness a creditor shall consider:
(i) The credit history, when available, of accounts designated as accounts that the applicant and the applicant’s spouse are “permitted” to use . . .

As anyone can discern, the law clearly states that “any” account which an applicant is permitted to use must be considered. This certainly envelopes authorized user accounts. With that in mind, it is only reasonable to forecast a windfall of class litigation for any creditor who uses the aforesaid model.

In short, using this model just doesn’t make sense from a legal or business perspective. This is why FICO 08′ has yet to happen. In all honesty, we at Apex Credit Services, LLC cannot envision FICO 08’ moving forward as proposed in light of its illegality.

http://www.apexcreditservices.com