Point Deduction Technology
Your credit score is derived by a series of events, credit accounts, and the absence of certain credit accounts. Point deduction Technology will not only help you with understanding your current credit accounts by assigning a number per tradeline but will also show you how many points you may gain by adding certain accounts.
Transrisk Vs. FICO
Different credit scores have different ranges and scales. Each credit score range is further divided into different risk categories. Here is a summary of the most common credit score ranges.
The most commonly used credit score is Fico by Fair Isaac. It is used by more than 90% of creditors and lenders, and dominates the market. Fico scores have many versions. Each of the 3 major credit bureaus (Equifax, Experian & TransUnion) has its own version of Fico called TransRisk/Emperica, Beacon, Pinnacle, Score Power, TransRisk, Fico I, Fico II, & Precision.
In addition, all of the three major credit bureaus distribute their new Vantage Score. While most of the Fico-Based scores have a similar credit score range (with small variations), the Vantage score runs on a completely different credit score scale.
Although Credit Score Increaser provides the TransRisk Score with a range 400 to 925 the point deduction technology and target score simulator are actually more important than any credit score issued.
Mortgage scores range from 350 to 850, Fair Isaac developed this more stringent model so the scores issued are generally lower than all other models, for example, a 840 TransRisk Score would be the equivalent to a 720 FICO Mortgage Score.
Credit Score Increaser's point deduction technology software was developed to analyze credit account weight determined from the FICO model not from any credit score. Each credit account will have a number assigned from zero upwards along with recommendations to increase your scores from the most stringent to higher score models.
Credit Score Increaser suggests you don't put as much emphasis on the score but to focus on the tools provided to help you understand your current credit accounts and the steps necessary to maximize and maintain the highest credit level. This will ultimately allow you to reach and maintain a high credit score.
About Vantage Scoring
VantageScores SM, which is both used by lenders and now available to consumers, is the first credit score developed cooperatively by Experian and the other national credit reporting companies.
The VantageScore scale approximates the familiar academic scale, making it simple to associate your VantageScore number to a letter grade. You now will have clear insight into how lenders using VantageScore will view your creditworthiness.
901 - 990: A
801 - 900: B
701 - 800: C
601 - 700: D
501 - 600: F
A (901 - 990) Super Prime
Consumers in this group are scoring in the top 11% of the population. Consumers in this category are likely to be viewed as a very low credit risk by most lenders. Lenders are likely to offer their best rates and terms to consumers in this score range.
B (801 - 900) Prime Plus
Consumers in this group are scoring in the top 11% of the population. Consumers in this category are likely to be viewed as a very low credit risk by most lenders. Lenders are likely to offer their best rates and terms to consumers in this score range.
C (701 - 800) Prime
Consumers in this category are scoring in the top 60% of the population. Lenders typically view this category as creditworthy and may offer reasonable terms to consumers within this score range. Some lenders may wish to review the credit history of consumers in this category in more depth and may require additional documentation in order to extend favorable terms.
D (601 - 700) Non-Prime
Consumers in this category are scoring in the lowest 38% of the population. Lenders typically view consumers in this category as higher risk. While many lenders still make credit available, they will likely offer somewhat less favorable terms to compensate for higher default rates in this category.
E (501 - 600) High Risk
This category represents the lowest-scoring 19% of the population. Lenders generally view this as a very risky group. Many prefer not to extend credit to this group. Others may extend credit but require deposit accounts to protect the loan. Some will extend more traditional credit but require much higher interest payments to compensate for the increased risk associated with this category.
Vantage Scoring Factors
Available Credit (7%):The amount of available credit on all your accounts. Low balances are an indicator of good credit management and low lending risk. High balances on your accounts can indicate potential overuse, which can negatively affect your VantageScore.
Recent Credit (10%):
The number of recently opened credit accounts and credit inquiries. Taking on new debt or applying for a number of new accounts recently can be an indicator of credit risk.
Depth Of Credit (13%):
The length of your credit history and the types of credit you have. A long credit history provides greater insight into how you manage credit, and so can have a positive affect on your VantageScore. A mix of various types of credit, such as revolving accounts and installment loans, can also have a positive affect on your VantageScore.
Balances (15%):
The amount of recently reported balances, both current and delinquent. Balances that have increased recently can be an indicator of credit risk.
Utilization (23%):
The percentage of the credit amount you have used or that you owe on accounts. Using a large percentage of your overall available credit balances is an indicator of credit risk.
Payment History (32%):
Your repayment behavior. VantageScore considers whether your payments are satisfactory, delinquent, or derogatory. It is important to pay your bills on time. Late payments negatively affect your VantageScore.
FICO Scoring Factors
Payment History (35%):- Account payment information on specific types of accounts (credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc.)
- Presence of adverse public records (bankruptcy, judgements, suits, liens, wage attachments, etc.), collection items, and/or delinquency (past due items)
- Severity of delinquency (how long past due)
- Amount past due on delinquent accounts or collection items
- Time since past due items (delinquency), adverse public records (if any), or collection items (if any)
- Number of past due items on file
- Number of accounts paid as agreed
Amounts Owed (30%):
- Amount owing on accounts
- Amount owing on specific types of accounts
- Lack of a specific type of balance, in some cases
- Number of accounts with balances
- Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)
- Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans)
Length of Credit History(15%):
- Time since accounts opened
- Time since accounts opened, by specific type of account
- Time since account activity
Types Of Credit Used (10%):
- Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)
New Credit (10%):
- Number of recent credit inquiries
- Time since recent account opening(s), by type of account
- Time since credit inquiry(s)
- Re-establishment of positive credit history following past payment problems
Score Simulator
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What Is A Credit Score?
Your Credit Score is a number generated by a mathematical Algorithm - An Algorithm is defined as a set of rules for solving a problem in a finite (gathering of possibilities) number of steps, as for finding the greatest common divisor.
Fair Isaac Corp. - FICO™ built the most commonly used Algorithm based on credit data provided to the major credit bureaus, Transunion, Equifax, and Experian. The data comes from creditors on tens of millions of people. Your credit data is cross referenced to the tens of millions of peoples credit data and a number (credit score) is assigned. This number determines the probability on how likely you are to pay your bills on time.
Point Deduction Technology
Point Deduction Technology is a software program designed to analyze your credit data. Credit scores range from 350 to 850 leaving the possibility of capturing up to 500 points.
The software recognizes many factors used in credit scoring and assigns a point deduction number per item on a credit report. The assigned numbers will range from 0 to 100+ depending on the type of accounts reported.
The analysis separates the short term and long term point deductions, posting recommendations to recover the necessary points to increase a credit score.
Score Simulator
The Score Simulator is an innovative product allowing you to enter a target score and based on credit data will provide a plan to achieve the score.
The Score Simulator extracts your credit data and adds the assigned point deductions. This information, along with the ability to change the status of each account, allows you to build a plan through several scenarios enabling you to capture and/or build points.
It's important to be provided with necessary recommendations in order to maximize your score.
Transrisk Vs. FICO
Different credit scores have different ranges and scales. Each credit score range is further divided into different risk categories. Here is a summary of the most common credit score ranges.
The most commonly used credit score is Fico by Fair Isaac. It is used by more than 90% of creditors and lenders, and dominates the market. Fico scores have many versions. Each of the 3 major credit bureaus (Equifax, Experian & TransUnion) has its own version of Fico called TransRisk/Emperica, Beacon, Pinnacle, Score Power, TransRisk, Fico I, Fico II, & Precision.
Credit Score Increaser Advantages
Before applying for credit, insurance, or employment check your credit and score first.
Credit Score Increaser will provide:
1. Credit Report with Score
2. Point Deduction Technology detailing the accounts affecting your score the most.
3. Posted Short Term & Long Term Recommendations
4. Target Score Simulator - Simply enter your desired score and follow the steps to increase the score.
5. Money Simulator - Enter dollar amounts to find out how many points you can gain.
6. Highlights on your report where most errors occur.
7. Customer Support
