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Our Guarantee

Our commitment to you and to exceptional service is such that we do not believe that we should be paid unless negative/bad credit items have been removed from your credit reports. Simply put, if negative item(s) are not removed from your credit report in the first 120-days or less, you are entitled to a full refund of your application enrollment fee, minus the $45.00 cost of ordering your reports.

Seventy percent of credit reports contain information that is inaccurate, incomplete, unverifiable, misleading or obsolete. Our vast knowledge and experience in the laws related to credit repair allows us to have these negative items deleted from your credit reports. However, it is important that you understand that since the credit bureaus and/or creditors are actually the ones doing the "deleting" - albeit, as a result of our investigations, we cannot, according to Federal law, legally guarantee what somebody else is supposed to do, or the specific result of a specific account. That is why we offer to you our money back guarantee.

REFUND POLICY: We want to make sure that we continue to offer the best guarantee in the industry, so in addition to our 120 day guarantee we also offer a full or partial refund of your monthly fees if after 12 months of being a client you are dissatisfied for any reason with your results. After 12 months you may request an evaluation of your account. You must send us current credit reports. We will calculate the total value of all successfully deleted and/or improved items and compare that amount to the fees you have paid us. If what you have paid exceeds the value of deleted and/or improved items we will reimburse you the difference. To determine this we will assign a value of $60.00 to every successfully improved or deleted item from your credit report.

ADDITIONAL WARRANTY: And, if within one year from the date removed/deleted, negative information mistakenly reappears on your credit file, we will, at no additional charge, re-investigate to have it removed again.

What does it Cost?

You may choose to have our one-time $189.00 application/enrollment fee ($309.00 for a couple – a $69.00 savings) billed 5 to 15 days after you enroll. You may cancel this agreement at anytime within the first five days and you will not be billed anything. Your enrollment fee will cover the most expensive portion of your case - your case setup. This includes the "Mycreditmax Consultants' Guide to Your Credit Score" booklet, all welcome/orientation communication being sent, ordering of all three of your credit reports from Equifax, Experian and TransUnion, up to one hour of consultation with one of our credit consultants, processing and data input, verification and payment setup, and building of physical file.

In accordance with federal regulation we will never charge you in advance. Your case set-up, including ordering of all three of your credit reports on your behalf, will be completed before you are ever billed the enrollment fee.

Thereafter there is a monthly service fee of just $35.00 per month ($45.00 for our Premier service plan or $65.00 for the HomePlus service plan - Plans are explained in more detail below). We never charge you in advance of having work performed. We will process the monthly program fee each subsequent month for work performed the previous month. Many months the amount of work that we perform far exceeds the small monthly amount that we charge, nonetheless, rest assured that we will never bill you more than agreed.

Fees are refundable. The enrollment fee is refundable as per our 120-day refund policy. And the monthly fees are refundable as per our service guarantee.

For your convenience you may pay by credit card or check draft. Cash is only accepted in person in at our offices. Get unlimited disputes & deletions. There is no limit to what kind of items we dispute and delete, or how many items we dispute and delete.

Enjoy first-class customer service. Our counselors are trained and qualified individuals whose knowledge, consistent performance and attention to detail are unparallel in the industry.

FAQs

How long does it take?
How does it work?
How much will it cost?
What are your plans and how do they work?
What happens after I enroll?
Can you delete bankruptcies?
Is cleaning my report legal?
Do you charge in advance?
Do you offer a warranty?
Will I be tied into a contract?
Can I cancel anytime?
Where do I mail my reports?
How long do negative items stay listed?
What is a credit score?
What kind of information will be on my credit report?
Can I see my credit report?
How much bad credit does it take to be denied credit?
Who looks at my credit report?
What is a public record?
What is a charge off?
Can a bad credit mark actually be deleted?
Is this legal?
Does it matter which state I live in?
Will this raise my credit score?
Is there anything that can not be removed from a credit report?
How many items do you dispute at one time?
Should I still be paying my bills?
If I keep paying my bills will that raise my credit score?
Can I restore my own credit?

How long does it take?

Most of our clients will begin seeing positive results within 45 days after we receive their credit reports. Frankly speaking, our money back guarantee is such that we want you to see positive results as soon as possible.

Obviously, everyone's credit situation is completely different, so how long it takes for you to achieve your expected results depends on the nature of your case, the number of questionable credit items on your reports, your participation in getting credit reports to us, and the level of credit bureau and/or creditor cooperation. We will do our part, the auditing, creating investigation requests and challenging of your reports, usually within 72 hours from the date we receive them. Most of the wait-time after that is usually spent waiting for the credit bureaus or creditors to respond.

On average, most of our clients have obtained the desired result by the eighth month. Keep in mind that we may not challenge all negative inaccurate, misleading, unverifiable, outdated and obsolete items simultaneously. We have found that in some cases, doing so would be less effective and may raise flags with the credit bureaus. Our expert knowledge in how to prepare proper investigations that can pass the credit bureaus' screening process and will receive the attention necessary for our desired results is just one of the many competitive advantages we maintain at Mycreditmax Consultants.

How does it work?

There exist many laws, both State and Federal that not only protect you - the consumer, but also regulate the credit bureaus and the creditors that report to those credit bureaus. We will use our vast experience and expert knowledge to be your advocate in exercising your rights and correcting your credit reports with Equifax, Experian and TransUnion.

Once we receive your credit reports Mycreditmax Consultants will immediately begin the process of auditing your reports and preparing the investigations that we will be sending on your behalf to the credit bureaus. Typically, you should begin seeing positive results approximately 30 - 45 days after we initiate the investigation process.

Once the credit bureaus have processed the first round of these investigations, they will send you updated copies of your credit reports showing you the results of the investigations. Simply forward the updated reports to us and include all other correspondence you receive from them so that we may continue the process.

Whenever we receive your updated reports, we will document the progress, re-audit your reports and initiate the next round of investigations, thus gradually working through the entire list of negative inaccurate, unverifiable, outdated, misleading or obsolete items on your credit reports.

Our expert knowledge in how to prepare proper investigations that can pass the credit bureaus' screening process and will receive the attention necessary for our desired results is just one of the many competitive advantages we maintain at Mycreditmax Consultants.

How much will it cost?

You may choose to have the initial fee ($189.00 for an individual or $309.00 for a couple – a $69.00 savings) billed 5 to 15 days after we get started. You may cancel this agreement at anytime within the first five days and you will not be billed anything. The initial fee will cover the most expensive portion of your case - your case setup. This includes the "Mycreditmax Consultants' Guide to Your Credit Score" booklet, all welcome/orientation communication being sent, ordering of all three of your credit reports from Equifax, Experian and TransUnion, up to one hour of consultation with one of our credit consultants, processing and data input, verification and payment setup, and building of physical file.

Fees are refundable. The enrollment fee is refundable as per our 120-day refund policy. And the monthly fees are refundable as per our service guarantee.

For your convenience you may pay by credit card or check draft. Cash is only accepted in person in at our offices.
Get unlimited disputes & deletions. There is no limit to what kind or how many items we dispute and have deleted.

Enjoy first-class customer service. Our FCRA certified counselors are trained and qualified individuals whose knowledge, consistent performance and attention to detail are unparalleled in the industry.

What are your plans and how do they work?

With all of our plans we will analyze and perform a general audit of your credit reports on a monthly basis for the purpose of identifying potentially negative inaccurate, outdated, misleading unverifiable and obsolete information and we will determine the best way to challenge that information. We may prepare and submit investigation requests, authorized disputes, validation requests or other necessary documents and submit them to the proper parties electronically, orally or by written correspondence for any and all of these items that we identify. We will use our experience, expertise, knowledge of relevant Federal and State laws, and best judgment to re-audit and/or re-challenge the inaccurate negative factors.

With our Standard Plan we will contact the credit bureaus on your behalf and will challenge the items using applicable laws, such as FCRA and FACTA. With our Premier Plan, we do everything described in our Standard Plan plus we also intervene on your behalf directly with debt collectors and creditors using additional remedies such as good will adjustment requests and applicable state and federal laws such as FDCPA, FCBA, TILA, HIPAA, etc. And with our HomePlus Plan we include everything described in Premier Plan plus we will dispute questionable inquiries and, most importantly, we will have one of our approved mortgage professionals periodically assess your progress and recommend solutions with the goal of having you qualify for a home loan as soon as possible. Additionally, if you receive a home loan through one of our approved brokers, we will refund you all of the money you have paid us for credit repair, essentially making your credit repair FREE. This is a great plan if the purpose of your credit repair is to qualify for a home loan.

What happens after I enroll?

Within five days after enrolling Mycreditmax Consultants will perform the most expensive portion of your case - your case setup. This includes sending you copies of the "Mycreditmax Consultants' Guide to Your Credit Score" booklet, all welcome/orientation communication, ordering of all three credit reports for you from Equifax, Experian and TransUnion, up to one hour of consultation with one of our qualified credit consultants, processing and data input, verification and payment setup.

We will either help you obtain your credit reports immediately on line or we will order them by mail, whereby you should receive your credit reports in approximately 2 weeks. Once you receive your credit reports you will mail them to us and we will immediately commence with the audit and investigation process of your credit reports, if we haven't done so already. If we need to contact you for any reason during this time, or at anytime thereafter, one of our consultants will contact you by telephone, mail or email.
And of course, you can always contact us for any reason, toll free at 1-877-40-CREDIT.

Can you delete bankruptcies?

Bankruptcies are routinely removed from our clients' credit reports, as well as a vast array of items included in bankruptcy.
Although we are prohibited from guaranteeing the specific results of a specific account, we can tell you that we have removed thousands of bankruptcies in the past, just as the examples above show.

Is cleaning my report legal?

Absolutely! It is because it is legal that we are able to do what we do, for we use the laws that protect you, the consumer, and that regulate the credit bureaus and the companies that furnish information to them to accomplish our work. You are given certain rights under the Fair Credit Reporting Act and other laws, and we offer our experience, expertise and services to help you assert these rights.

The credit bureaus would like to have you think otherwise, but the truth is that the Congress, when enacting the Credit Repair Organization Act stated that consumers have a "right to seek help from Credit Repair Organizations".

Do you charge in advance?

No. In accordance with federal regulation, Mycreditmax Consultants charges only for services after we have already performed them for you.

Do you offer a Guarantee?

Yes! Our commitment to you and to exceptional service is such that we do not believe that we should be paid unless negative/bad credit items have been removed from your credit reports. Simply put, if negative item(s) are not removed from your credit report in the first 120-days or less, you are entitled to a full refund of your application enrollment fee, minus the $45.00 cost of ordering your reports.

Seventy percent of credit reports contain information that is inaccurate, incomplete, unverifiable, misleading or obsolete. Our vast knowledge and experience in the laws related to credit repair allows us to have these questionable items deleted from your credit reports. However, it is important that you understand that since the credit bureaus and/or creditors are actually the ones doing the "deleting" - albeit, as a result of our investigations, we cannot, according to Federal law, legally guarantee what somebody else is supposed to do, or the specific result of a specific account. That is why we offer to you our money back guarantee.

REFUND POLICY: We want to make sure that we continue to offer the best guarantee in the industry, so in addition to our 120 day guarantee we also offer a full or partial refund of the monthly program fees if after 12 months of being a client you are dissatisfied for any reason with your results. After 12 months you may request an evaluation of your account. You must send us current credit reports. We will calculate the total value of all successfully deleted and/or improved items and compare that amount to the fees you have paid us. If what you have paid exceeds the value of deleted and/or improved items we will reimburse you the difference. To determine this we will assign a value of $60.00 to every successfully improved or deleted item from your credit report.

ADDITIONAL WARRANTY: And, if within one year from the date removed/deleted, negative information mistakenly reappears on your credit file, we will, at no additional charge, re-investigate to have it removed again.

Will I be tied into a contract?

No. Our services are on a month-to-month basis.
Mycreditmax Consultants allows you to cancel the service without penalty or obligation at any time.

Can I cancel anytime?

Yes.
Mycreditmax Consultants allows you to cancel the service without penalty or obligation at any time.

Where do I mail my reports?

During the course of the service you will mail your credit reports along with any correspondence you receive from the credit bureaus to:

Mycreditmax Consultants, Inc.
122 Hialeah Drive
Hialeah, FL 33010

How long do negative items stay listed?

Federal Law requires that most negative credit items must be removed from your credit bureau file after seven years of no activity. There are some exceptions to this, like Chapter 7 bankruptcy, which can be reported for up to ten years. However, there have been reports with negative items listed for well over 7 years. This happens often when the credit bureaus make a mistake, or when the creditor re-ages the account or is reporting a wrong "last activity" date. This can also happen with collection accounts that are sold from one debt collector to another. Sometimes, figuring out the date that the "seven year clock" starts counting from can be a bit complicated. For example, the law states that for charge-off accounts, the date begins 180 days after the commencement of the most recent delinquency.
Inquiries may remain on the credit report for up to two years.

What is a credit score?

A credit score is a number that reflects your risk level, as an individual consumer, as determined by a scoring model or formula. The higher the number, the lower the risk will be to the lender. As you apply for increased credit or attempt to make a purchase, the lender will check your ability to pay back that loan. The more negative marks you have on your credit report, the less likely you will be granted the loan or purchase you requested. The score generally ranges from 350 (lowest) to 850 (highest).

We at Mycreditmax Consultants believe this area to be so important that we have written the "Mycreditmax Consultants' Guide to Your Credit Score". This comprehensive and easy to understand guide you will teach you everything you need to know about the subject. More on credit scores here: http://www.creditrepair-online.com/aboutscore.asp

What kind of information will be on my credit report?

Credit reports contain a listing of some or all of your credit accounts that have been active at some time within the last 7 years. They also contain any public records (Chapter 7 bankruptcies are reported for 10 years), current and previous addresses, current and previous names, a listing of potential creditors who have received your credit file and other miscellaneous information the credit bureau has about you. Each account listing generally has your account number, the credit limit, your current balance and your previous payment history. This payment history can contain notes of late payments, any collection or transfer history, whether the account was included in bankruptcy and the current payment status of the account.

Can I see my credit report?

Most credit grantors are not allowed by the credit bureaus to show you your own credit report. But included in our enrollment procedure, we will order all three of your credit reports for you. When we do this for you it will not count as a negative inquiry against you. In addition, under the Fair and Accurate Credit Transaction Act you may be entitled to receive a free credit report. You can go to www.annualcreditreport.com to check availability.

However, if you want to see your credit score you will have to purchase it. We recommend you purchase your FICO credit score, as this is the score that most lenders will see. More on credit scores here: http://www.creditrepair-online.com/aboutscore.asp

How much bad credit does it take to be denied credit?

Even one small late pay listing may result in credit denials. Any negative credit whatsoever can become a substantial credit obstacle. There are also other factors that will play into the decision of the lender. What is your debt to income ratio? How long have you been with your current employer? The exact criteria used for granting or denying credit varies from lender to lender, but any negative/bad credit remark on your credit report may be enough to deny you credit.

Who looks at my credit report?

Lenders, property managers, insurance companies, prospective employers, companies which you presently have a credit relationship with and anybody with a permissible purpose who wants to know who you are can get access to your credit file. In many situations your credit report will actually become your identity. People will know you not by who you are, but by what is reported about you from the credit bureaus. Obviously, those reports can be extremely damaging especially if they contain incorrect, misleading or obsolete information.

What is a public record?

A public record is a file such as a bankruptcy, tax lien or judgment that is filed at the courthouse. Unlike your creditors, the courthouse does not report public record information to the credit bureaus. The credit bureaus must therefore rely on third parties or smaller local affiliated bureaus to go out and research this information. For purpose of fixing your credit, the laws that regulate the reporting of these public records are the same as any other item and are treated no differently in that regard.

What is a charge off?

When you become very delinquent on an account the creditor will probably "charge it off" against their profit and loss. A "Charge-Off" is basically an accounting term used in accrual accounting that says the amount is now a loss. In a short period of time the creditor determines that the account will not be paid and they will write it off for tax purposes. Once they minimize their loss from that account they will sell that file to a collection agency to decrease the loss even further. The collection agency will then use a wide variety of means to collect on the debt. Charge offs are very negative listings.

Can a bad credit mark actually be deleted?

Yes, they most definitely can be when they are found to be inaccurate, outdated, unverifiable, misleading, obsolete or legally lacking in some other way. Although the credit bureaus would have you think otherwise, we have seen literally thousands of deletions ranging from bankruptcies to late payments.

Just take a look at our testimonials and see actual credit reports and bad credit marks that have been deleted. We are the good at what we do and we are consistently researching new case law, amendments and methods that help us continue to be the best in the credit repair industry. That is why we back our service with our money back guarantee.

Does it matter which state I live in?

No. The laws that regulate the credit bureaus and your creditors are mostly federal law. We have clients nationwide. Your rights are the same whether you are in Alaska or Alabama.

Will this raise my credit score?

Yes, that is why we are helping you. Removing the negative inaccurate, outdated, misleading, unverifiable or obsolete items from your credit reports may have a very positive impact on your credit score and your ability to get credit. Clients who stay with our program and adhere to it may see their ability to receive credit enhanced tremendously.

We recommend reading the "Mycreditmax Consultants' Guide to Your Credit Score" for more on this.

Is there anything that can not be removed from a credit report?

No, all information reported by the credit bureaus are subject to the same laws and criteria. We may challenge on your behalf any items we challenged and the credit bureaus must investigate these items.

How many items do you dispute at one time?

Experience has shown us that investigating too many items at one time can actually slow down the process because the credit bureau may deem our request frivolous. Therefore, we only submit investigations for the number of items that we deem appropriate for your case.

We want you to see results and will challenge as many items as possible without jeopardizing a slowdown of the process.

Should I still be paying my bills?

We would never advise not paying your bills, but that issue is between you and your creditors. We work on what appears on your credit reports and leave the issue of your current payments up to you. Although related in some ways, your bills and your credit are not the same thing.

If you are having trouble paying your bills you should probably talk with a professional debt counselor. There are many debt-counseling companies out there and many of them leave a lot to be desired. If you would like a reputable and honest company we recommend you call 1-866-FIX-A-DEBT or visit www.debtconsolidationofamerica.com.

If I keep paying my bills will that raise my credit score?

Paying your bills on time should do nothing but help your credit score. Many of our clients are trying to buy a home, refinance a home or qualify for new credit. Good payment histories will help you do all of those things. We often tell people that while we work on the past you should be working on the future.

If you are having trouble paying your bills you may want to talk to a professional debt counselor. There are many debt-counseling companies out there and many of them leave a lot to be desired. If you would like a reputable and honest company we recommend you call 1-866-FIX-A-DEBT or visit www.debtconsolidationofamerica.com.

Can I restore my own credit?

Yes, you can. You can also represent yourself in a court of law but that doesn't mean it is necessarily a very good idea.

We offer experience, knowledge, time and professional help at very affordable rates for your convenience and benefit. It isn't a coincidence that the Federal Trade Commission receives more complaints against credit bureaus than any other type of business. Remember, the credit bureaus are primarily interested in protecting their profits. Investigating your reports consumes these profits. The credit bureaus will do everything in their power to discourage consumers from making progress with their credit restoration.

Restoring your own credit is like repairing your own transmission or representing yourself in court: it is possible, but you must decide if you are willing to take the time and assume the risks of doing it yourself.

According to a recent report by ConsumerReports.org, a Nonprofit, Independent firm, "It isn't nearly as easy for consumers to correct errors as it is for the [credit] agencies to make them." Just as you are probably better at what you do than we would be, we are probably better at credit repair than you would be.

About your Credit Score

At Mycreditmax Consultants, we believe that consumers should be empowered with as much information regarding their credit as possible. We created this comprehensive yet easy to understand section on credit scores in order that you may be better equipped at improving and maintaining your good credit and understanding how creditors actually view you. This is the sane information that many other sites try to sell to you in the form of an e-book.

We provide this information totally free and will even email it to you for free if you wish.We realize that there are many myths circulating about “Credit Scores” so we want you to know the truth. When you are finished reading, you should know everything you need to know about your credit scores.First off, itis important to realize that most lending decisions nowadays are decided simply by looking at your credit score. Some decisions are even automatically generated by computer using preset credit score criteria. The days of lenders actually looking at the details of your credit report are long gone. Understanding how to obtain and keep a high credit score is vital to getting the credit you want and deserve.

In this section you will learn things like, what is a credit score, do I have more than one credit score, how come my credit score was different when I checked it and when the lender checked it, what it costs me to have a low credit score, how my credit score is calculated, how to improve my credit score, how to obtain my real credit score, important credit score facts, and even how to add positive accounts to my credit report and increase my credit score without actually having to qualify for new credit.

Introduction to credit scores

The company that created the scoring model used today by most lenders is called Fair Isaac Corporation and commonly known as FICO, for short. Fair Isaac Corporation is a California Company founded in 1956 by Bill Fair and Earl Isaac. They pioneered the field of credit scoring for financial companies. They have expanded their enterprise to cover decision systems, analytics and consulting.

When the three major credit bureaus calculate your credit score using software from FICO, they come up with what is commonly termed, your “FICO Score”. Each credit bureau propriotizes their calculation of this score by giving it their own name. Equifax calls their version of the FICO score the “Beacon score”; Trans Union calls their version of the FICO score the “Empirica score” and Experian creatively calls theirs the “Experian, Fair Isaac score”. The “FICO score” is the score that over 70% of lenders will use to decide if you qualify for credit or not.

But beware, many companies, even the credit bureau themselves, have realized that there is lots of money to be made selling credit scores so they have created their own generic scoring models designed to get you to buy their version of a credit score model similar to that of FICO’s. They will try to sell you a number called a credit score, but not the credit score that your lenders will use. If it is not your FICO credit score it is probably not the credit score you want.

What your credit score means.

The credit score rating system is meant to develop a snapshot of the risk you currently represent to a lender. Several parameters in your credit report, including payment history, length of account history, number of open accounts, loans, mortgages, public records, and others are formulated to produce a 3-digit score between 300 and 850. There are other scores used by lenders and insurance companies (some of which are developed by FICO) such as Application and Behavior scores. These other scores take other information into account. Usually a lender will use a combination of your credit score along with other factors, such as income, debt ratio, or current assets when determining your risk. They all have the same objective, to determine the borrower’s potential risk. Regardless of whether the score was generated by FICO or a system based on FICO parameters, they all yield an industry standard 3 digit score. This score usually places you in one of 3 main categories.

Low Risk, Average Risk, and High Risk

Low Risk

If your credit score is above 680, you are generally considered a lower risk and should have no problem getting a good interest rate on your home loan, car loan, or credit card.

Average Risk

If your credit score is below 680, you are average or "sub prime" risk, and will likely be offered less than favorable interest rates and terms on your loans and credit cards.

High Risk

Below 580 is a high-risk credit score. Although more difficult, you may still be able get a credit card but will likely be required to give a security deposit and be hit with high interest and fees. You can forget about most home loans and the majority of new car loans at this score. Below 580 is no place to be. You will pay much, much more for your credit transactions. You may even pay more for your insurance rates. A very low score can even prevent you from getting a job with many companies.

What it cost you to have a low score?

If you are financing or looking to finance a car, having poor credit can mean higher down payments and over 200% higher interest rate. The higher interest shows up every month in a higher payment.

This example is based on financing $25,000 for 60 months.

Credit Status	Rate	Payment	Over 5 years	Monthly Cost of Bad Credit
Good	5%	$471.78	$0.00	$0.00
Mildly damaged	8%	$506.91	$2,107.74	$35.13
Damaged	12%	$556.11	$5,059.82	$84.33

Bad credit in auto financing can really hurt, but it is nothing compared to the cost of bad credit when a home is involved. A typical home can cost between $90,000 and $245,000 more in interest if you are buying the home with a low FICO score, as indicated below.

This example is based on financing $200,000 for 30 years, P.I. only.

Credit Status	Rate	Payment	Over 30 years	Monthly Cost of Bad Credit
Good	5%	$1,073.64	$0.00	$0.00
Mildly damaged	7%	$1,330.6	$92,506.23	$256.96
Damaged	9%	$1,755.14	$245,339.76	$681.50

In fact, in general, those with bad credit throughout their life will pay approximately $250,000 more in interest as opposed to those with good credit. This is why it is so important to obtain and keep a high score.

What it cost you to have a low score?

The methods of calculating your FICO credit score may differ slightly depending on the credit bureau. When obtaining your credit score from one of the Credit Bureaus it is important to understand that your score is not coming directly from FICO, rather it is adapted to each credit bureau’s report and is given its own name:

credit scores

Equifax = Beacon Score

Trans Union = Empirica Score

Experian = Experian/Fair Issac Score

Your credit score is derived from your bureau data and is calculated each time it is requested and is not a permanent part of your credit file. Accordingly, it will change every time data on your credit reports change and may be slightly different each time it is requested. Since each credit bureau usually reports different information, your credit score from each credit bureau will also be different.

However your credit score is calculated, it will always take into consideration many factors or categories of information. No one piece of information determines your credit score and all of these factors are interrelated with one another. As the information in your credit report changes, the importance of one or several factors may change in your FICO score. Lenders may look at many things when making a credit decision, including your income and the kind of credit you are applying for. However, your FICO score does not reflect these facts, as it only evaluates the information retained by the credit-reporting agency.

Its difficult to say exactly how the credit score is calculated as FICO does not reveal the details of their model. We do know that it is largely based on the following factors.

1. Payment History (Previous credit performance) = 35%

2. Outstanding Debt (Current level of indebtedness) = 30%

3. Amount of time credit has been in use (Credit history length) = 15%

4. Recent Inquiries (Pursuit of new credit) = 10%

5. Types of credit experience and credit in use = 10%

1. Previous Credit Performance (Payment History) 35%

A lender wants to know what your payment history is like. Have you paid everything on time, are you late on anything now, etc… Your payment history is usually the most important factor used in calculating your score. In fact, even just one 30-day late payment can have a tremendous negative impact on your score. This “negative history” is exactly what Mycreditmax Consultants are dedicated to improving for you. Each time a negative item is removed from your credit it should have a positive effect on your credit score.

Here is more information on what the score looks for:

Payment history on your accounts. These include credit cards, retail accounts (department store credit cards), installment loans, finance company accounts and mortgage loans.
Collection items and Public records—this includes judgments, bankruptcies, suits, liens, collection items and wage attachments. Most of these are considered quite serious, although older items will count less than more recent ones.
It’s all in the details. This includes specific details on late and missed payments. Negative information/late pays are determined using three factors.

Recentness - How long ago did the delinquency occur?

How old is the late pay? A 30-day late payment made just a month ago will affect your score much more than a 90-day late payment from five years ago.

Severity - What level of delinquency was reached?

How late was the payment made? 30 days, 60 days, 90 days or worst of all, is the payment still outstanding.

Prevalence - How many credit obligations have been delinquent?

The amount of negative items as compared to your total amount of available credit is another small factor. For instance, 5 accounts showing 3 late payments is much worse than 10 accounts showing 4 late payments. One of the biggest sub factors is how many accounts show no late payments. A good track record on most of your credit accounts will increase your over all FICO score substantially.

Note: Note that paying an account that was previously delinquent or in collection does not make that account disappear from your credit report.

2. Current Level of Indebtedness (Amount Owed) 30%

Are your cards max-ed out? High balances, or more precisely, balances that are close to your credit limit can negatively affect your score.

The creditor wants to know, Can the borrower pay me and still afford to pay his other bills? These are the types of questions that most borrowers want to know and the answers are almost as important as your previous credit history.

Total amount owed on all open accounts. Paying off your credit cards in full every month does not mean that they won’t show a balance on your report. Your total balance on your last statement is generally the amount that will show in your credit report.

Specific types of accounts, such as credit cards and installment loans are scored differently and in conjunction with the overall amount owed on all open accounts. This also factors into your balance on each specific type of account. For instance; you have a credit card with a very small balance and no late pays. Even though the balance is low, this still looks very good as it shows that you are able to manage your credit responsibly

How many accounts do you have open and how many have balances? A large number of open accounts, even with small balances, can indicate higher risk of over-extension. This is weighted in your FICO score but most lenders leave it to their discretion as they have access to your income amount. For the most part though it is good not to have too many credit card accounts. Closing credit accounts will not raise your credit score and may actually hurt your credit score.

How much of the total credit available to you, are you using? In other words, are you close to maxing out? For example, if you have a credit card with an available credit line of $1000 dollars and you have a current balance of $850.00 or more, then you are nearly “Maxed out”. Several credit cards or other debts with balances approaching the credit limit will affect your score negatively. Even if you have made your payments responsibly. Your FICO score will factor your overall ratio of debt to your overall limits.

As a general rule keep your balances below 50% of your limit or, if possible, pay the cards off altogether. If you have to choose between paying $1000 on three cards or paying off one card with a $3000 balance, pay off the one card. Another helpful tip- don’t forget to request a credit limit increase every six months, or whenever your credit card company allows you to qualify for one. This will give you more “available” credit and the ratio between your credit limit and what you owe will be lower. Please note, you must have the discipline to not use your new available credit or you may not only due more damage to this ratio, but you may become overextended.

By the way, if you already feel that you may be overextended on your bills, contact a credit professional. We suggest calling a certified and knowledgeable credit counselor toll free at 1-866-FIX-A-DEBT or visit http://www.debtconsolidationofamerica.com for free information from a reputable, honest and non-profit credit counseling service that can have your payments and interest lowered. It does no good to repair your credit if you will not be able to keep it in good standing.

3. Amount of Time Credit Has Been In Use (Length of Credit) 15%

The longer your accounts have been open, the better your credit score. This factor only makes up about 15% of your total credit score, however, so even young people and recent immigrants can still score high overall as long as their other factors are good. If you are new to credit your best bet is probably just to open an account and be patient. There is one technique that you may be able to use, however. We will discuss it in detail later. Just understand that the credit score takes into account these factors:

How long your credit accounts have been open or the number of months you have been in the credit bureau’s file.
The age of your oldest account and the average age of all your accounts.
How long it has been since you used certain accounts as well as the mix of older and new trade lines.

4. Pursuit of New Credit (10%)

Credit is much more popular today. Just look at the number of credit card offers you get via the mail and the Internet. Most consumers can now shop for credit and find the best terms for their situation. But every time you apply for credit of any kind, you create an inquiry on your credit report. Too many Inquiries negatively affect your score. Inquiries within the last six months are especially damaging and most inquiries will remain on your report for up to 2 years. Research shows that opening several credit accounts in a short period of time does represent greater risk and can lower your overall credit score. Fair Isaac Corporation has realized that several inquiries may be made when a consumer is shopping for one auto loan or mortgage. Recent adjustments have been made in the scoring process to account for what is referred to as “rate shopping” in these categories. A grouping of auto or mortgage inquiries — which probably represents a search for the best rate on a single loan — is treated as though it was a single inquiry. For instance: most auto loan inquires that are within 15 days of each other only count as one inquiry. And most mortgage inquiries that are within 30 days of each other only count as one. Your score takes all these factors into account:

How many new credit obligations have recently been assumed? Opening several credit card accounts at the same time can look bad. What FICO is looking for is “To what extent is this consumer trying to open new credit accounts?”

How recent were these efforts? How long it has been since you opened a new account.
Primarily these factors:

o Number of inquiries in last six months
o Number of trade lines opened in last year
o Number of months since most recent inquiry

There are no good inquiries. Inquiries are typically seen as a request for credit and thus are factored as if you are searching for credit. Every time you fill out one of those credit card applications to get a free t-shirt, you are also getting a free inquiry. Every time you fill out an online application for a credit card, or other type of loan, you are getting an inquiry. Too many inquiries looks bad. While there are no good inquires there are some inquiries that are considered neutral and are not factored into the score. These inquiries are most often known as:
- Consumer initiated. A request for your own credit report shows as a consumer inquiry. When you run a credit check on yourself.
- Pre-Approval or PRM. If a potential lender has viewed your credit reports to determine whether they want to offer you a loan, these are not factored into your score. However, once you fill out a credit application, your full report will be reviewed and a “bad” inquiry will appear on your reports.
- Periodic Review or AR. Many lenders will periodically review the credit reports of their current customers to see if there have been any major changes to their credit reports. If the lender discovers that your credit score is now too low for their standards, they may close your account or lower your limits. These inquiries created as a result of the periodic reviews are not supposed to be factored into your credit score.

As you can see from the below table, inquiries appear in different ways depending on the length of time between inquires and the type of Inquiry.

Type	Number of Days Ago	Number of Inquiries	Notes
Dept. Store	68	1	Applied for 1 department store card
Mortgage	65	1	Two mortgage apps within 30 days of each other counts as only 1 inquiry
Mortgage	56	1
Auto	25	1
Auto	9	Not counted at all if within 30 days of first inquiry.	These two don’t count at all as they were within 30 days of the first app and within 15 days of each other.
Auto	7	Not counted at all if within 30 days of first inquiry.
Bankcard	5	1

How inquiries are computed is somewhat complex. The above table is meant as a basic guide but does not cover all the different calculations. As a reasonable measure you should avoid unnecessary inquiries. The system is designed to take into account rate shopping but things like applying to credit card offers will add inquires to your file.

5. Types of Credit Experience (10%)

Having a healthy mix of different types of credit accounts, such as installment loans, retail accounts (like store cards), major credit cards (Visa and MasterCard), and a mortgage is what is considered by this part of the score. This is usually not a key factor in determining your credit score but it can help a close score. It’s not a good idea to try and open different types of accounts just to try and make this factor better. It will likely reduce your credit score in other areas. You should never open accounts you don’t intend to use anyway. Your credit score will take into account:

What type and how many accounts you have. The optimal ratio of installment versus revolving accounts depends on your profile and differs from to person. One factor that seems to have significant influence is your percent of open installment loans. Too many can lower this portion of your score.

Improving your Score.

Everything in this section covers information intended to help improve your credit score. Lets summarize what needs to be done.

Pay your bills on time. Sounds simple, but this is the biggest thing you can do to keep your score high. Delinquent payments and collections have a major negative impact on a score. If your payment is not going to be on time, make sure it is not 30 days late.
Keep your balances low on unsecured revolving debt like credit cards. High outstanding balances can affect a score.
The amount of your unused credit is an important factor in calculating your score. You should only apply for credit that you need.
Use a reputable credit repair, like Mycreditmax Consultants, to help repair negative outdated, misleading, inaccurate, incomplete or unverifiable information on your credit reports. Look for a company that does not charge for “time” like a monthly fee or annual fee, but rather will only be paid after providing results. Research shows that the longer you stay with the credit repair process the better results you will be able to achieve. Just remember that it probably took years to get the negative information on your credit report. As a general rule, you should be prepared to stay with the process for one year, unless completed before then.

FICO Facts

Routine credit checks, called AR’s (Account Reviews), from companies that you have existing accounts with should not cause damaging inquiries.
Checking your own credit report or credit score will not lower your credit score.
The type of loan that you are applying for makes a difference in the credit score that they will accept; 660 may be fine for an auto or home loan but may be risky for a credit card company because the consumer is more likely to make his car or mortgage payments before paying on a credit card if he is in a financial bind.
Low balances = better credit score and Zero Balances = even better. If given a choice between paying several cards down or paying one off, pay the one off.
Once your credit score is at 740 or above there is no point in trying to improve it, you have good credit.
Your average balance on credit cards and how many of your cards are over 50% of their limit are both factors in your credit score.
Pay down your cards but don’t necessarily close the accounts (that would effect your credit balance to credit limit ratios and may lower your score).
Public records are all considered equal for the score so a tax lien is just as bad as a bankruptcy on your score.
Although Income is not factored into bureau scores, it may be part of an application score. Depends on the lender.
PRM Inquiries (Promotional) created by lenders who wish to offer you credit do not affect your score.

Rarely Known Techniques (adding positive accounts to improve your score)

One technique that you may be able to use to add positive accounts to your credit file, even accounts that have been open for longer than you’ve actually had a credit file established, is done by being added as an Authorized User on somebody else’s credit card.

When you are added as an Authorized User to a credit card account, that Credit Card Company will usually report the entire history of that account on your credit report exactly as it appears on that of the owners. As an “Authorized User” you are not the party responsible for payment of the account and as such, your credit (or lack thereof) is not a factor in receiving the card. In fact, your credit is not even checked, so there is no inquiry. If you have a willing friend or family member, having them add you as an Authorized-User can have a considerable positive impact on your score. You never have to use the card yourself. In fact, you can even cut it up and throw it away once it arrives and your bad or good credit will never effect that of the primary account holder.

A word of caution though: since the entire history of that Authorized account is reported on your credit exactly as it reports on that of the owners, you must be sure that it is an account that does not have any late payment history and, more importantly, does not become late at any time while you are an authorized user.

Another very interesting means of adding a positive tradeline to your credit report may not require you to do anything different than you may already be doing. If you are one of 40 million renters in the United States , you normally do not receive any “credit” for making your payments on time. As a matter of fact, it’s usually your landlord that is receiving a positive payment history on his mortgage with your hard earned money.

With our revolutionary and exclusive new Rent Reporting program we can report your rent paymentson a monthly basis to all three credit bureaus as positive home payment. You deserve to receive “credit” for your payments and with Rent Reporting you develop a positive tradeline that establishes your ability to make payments on your home. We may even be able to report retroactively for up to 24 months.

This is a must have for anybody that is renting and/or planning on purchasing a home in the future. To get started reporting your rent, or for more information, call Mycreditmax Consultants toll free at 877-402-7334 or visit www.rentreporters.com.

How do I obtain my credit score?

You may order your FICO score with your credit report online directly from Fair Isaac Corporation ( FICO ). There you can buy your up to date credit scores and credit reports for all three credit bureaus individually or all at once.

Beware for “Credit Score” offers from other websites, even the credit bureaus websites themselves. Many times these are not real FICO scores and are only generic scores that are designed to get you to buy their version of a scoring model similar to that of FICO’s.

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