Do you know Fair Isaac? The Fair Isaac Company is the creator of the FICO score: that little three digit number that controls your ability to get a decent rate on your credit cards, mortgage loan, or car loan. It also impacts your ability to get car insurance, home insurance, and even to get a job. How can that be?

The Fair Isaac Company was founded in 1956 to provide data to help businesses make smarter decisions. In 1995 Fannie Mae and Freddie Mac gave the FICO score an important credibility boost when they recommended that lenders use the FICO score to qualify mortgage loan applicants. Imagine having no idea why your loan was disapproved except that something called a FICO score was not good enough. It was not until recently that the Fair Isaac Company was even willing to share the major categories that they use to calculate your score. The exact formula that is used to calculate your credit score is still a closely guarded secret. However, thanks to Internet lenders who in early 2000 published some of the FICO guidelines in response to public outcry over the secrecy, Congress finally made it a law that people should have access to their scores.

Over 65% of lenders now use the FICO scores to make sure that they will be able to get back the money that they lend. If it is even slightly possible that you will pay late or default on your loan those lenders will raise your interest rates or even deny you credit. In the next series of articles I will cover the five factors that affect your credit score: Payment History, Amounts Owed, Length of Credit History, New Credit, and Types of Credit.

© 2008 by Dragon Bear Inc. All Rights Reserved.



By: Linda Adams

I have never had a credit card. And I do not have bad credit just no credit history. Where is the best place to find one so I can start builing my credit?

on your credit report does the date opened mean that the account was opened by your credit report agancy or when you opened it.

Online credit reports are an easy way to learn what potential lenders will see about us, before we apply for a loan or credit. All too often, our early mismanagement of credit, like during our irresponsible youth, winds up hurting us for years. We get negative information on a credit report that could ruin our chances of getting additional credit long after we have begun managing credit more wisely.


So, if you’re considering making a major financial move it’s a good idea to check your credit report to know where you stand. That way you can be aware of problems before they derail your plans. And once you are aware of these problems, you can take steps to rebuild damaged credit and clean up that record.


If you’ve made mistakes in paying previous loans, bouncing checks, making late payments or other problems, you may still be able to reduce the amount of damage they will do to your credit with explanations or some basic repair. The first step is getting copies of your credit reports. Luckily, obtaining an online credit reports is easy. There are many companies on the Internet that will provide you with a copy of your credit report free of charge. Visit to learn more about getting your free copy of your credit report.


You can also get a copy of your credit report by requesting a copy directly from each of the three major national credit bureaus: Equifax, Experian and TransUnion. Checking your credit through the credit bureaus directly can cost you as much as $9 per report, although it differs from state to state. You can request that the report be mailed to you or obtain it online. But with so many options available for a free credit report – why pay for the same information that you can get without having to spend a dime?


But regardless of how you obtain a copy of your credit report, the most important thing is that you get a copy for yourself, review it and make sure that it is the best it can be. Then begin working to resolve any activity that can be repaired. The sooner you get a copy of your credit report, the sooner you can begin improving your credit.


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By: Beth Pardue

If you have a poor credit score, then the only way to obtain loans is through a bad credit history secured loan. The general idea of having a secured loan is to put up a property belonging to you in return of securing loans. The property can be anything – a car or even a piece of land, as long as its value is worthy to make up for the outstanding debt against the loan. Your creditor has the right to sell the property, if you default in your payments. The outstanding amount is obtained by selling the property at hand.

However, if you clear off the loan amount along with the interest in due time, you can reclaim your property intact. By having a bad credit history secured loan granting system, it relieves a lot of headache. Primarily, it becomes easier for someone to get a loan against his equity and on the other hand, assurance of salvaging payments for creditors is there. They do not bother much about financial risks in this case even with a borrower with a bad credit history, as they have the custody of their property.

Even though such loans may seem simple, there are several factors involved in a bad credit history secured loan. Even though the loan is in exchange of certain equity, interest rates are always implemented on the acquired loan. Since the equity contributes a major portion of the loan, interest taken is generally lesser than normal. However, you should deal with the lender offering the lowest interest rate.

Once a person tarnishes their own credit history, it becomes difficult for the person to get a loan sanctioned. It is really a tough task to raise the credit score up to better standards, after it has slumped down. No institution willingly credits customers with a bad credit history. However, there are always alternatives and few institutions offer bad credit history secured loans. These institutions irrespective of your bad credit history are willing to give you credit against your equity.

There are organizations that arrange for bad credit history secured loans over the web. These institutions are not concerned with your credit history in the past. Instead, they are simply concerned about what you can give to them in form of equity. They also offer much lower rates than others do. This is why securing loans are much better options, if one is sincere enough to clear off the loan within the stipulated period by not jeopardizing their equity.



By: Christopher Whitcomb

I’ve been trying to figure out how I can buy or lease a preowned vehicle with my age (20) and credit history. i don’t have have bad credit but not enough credit history; i’ve been denied several times applying for an auto loan through a bank. I have about $700 to put on a down payment. The problem is I don’t have a cosigner with good enough credit that could sign the car loan with me. And i don’t have a car i could trade in or collateral. It’s seems so difficult with me with so many obstacles. How can I make this happen?

Have you ever wondered what a credit card is? A credit card is a card made from thin plastic, usually 3-1/8 inches by 2-1/8 inches in size, containing identification information such as a signature or picture, which authorizes the named person to be periodically billed for purchases or services made to his account.

Information on the card is examined by automated teller machines (ATMs), store readers, and computers from banks and the Internet.

Where It Began

The use of credit cards began in the United States in the 1920s, at a time individual establishments, such as hotels and the oil industry, started issuing them to customers for purchases made at those businesses. This use improved significantly after World War II.

In 1950, Diners Club introduced the first universal card which could be used at different stores and businesses. Cardholders were charged and billed annual and monthly fees. American Express followed suit in 1958.

The bank credit-card system followed much later. Upon receipt of sales slips, the account of the merchant is credited by the banks to be paid by the cardholder at the end of the billing period. The balance is either paid in full or in monthly downpayments with interest at the discretion of the cardholder.

The first statewide national bank system was BankAmericard which began in 1959 by Bank of America in 1959. It was granted its license in other states beginning 1966 and was later known as Visa in 1976.

MasterCard, previously MasterCharge, followed. Smaller banks offering credit cards locally as well as regionally merged with large national or international banks in order to offer expanded services, such as meals and lodging.

Massive Popularity

Have you ever experienced being behind someone in line at the store shuffling through a stack of what must be at least 10 credit cards? Experts revealed that many U.S. citizens have at least one credit card. Indeed, credit cards have become valuable resources of identification. When widely used, a credit card can afford convenience and permit you to make purchases with almost a month to pay for them before being charged with finance charges.

Theoretically it sounds good. The truth is that many consumers are powerless to fully use these advantages because they are burdened with credit card balances every month, paying finance charges that can increase to a whopping 23 percent. It is quite irresistible for many to use the old “plastic” for purchases on impulse or buying things which are unnecessary. The numbers are alarming: In 1999, American consumers charged about $1.2 trillion on their general-purpose credit cards.



By: Jerry Warner

How does a college grad get a credit card with no credit history and no employment history? Can someone cosign to get one?
No one told me you needed a credit history to get a card and experience to get a job (only a degree for getting a job)

Is there a website or a place I can call to get a **FREE** Credit Report?

Everyone makes mistakes. Those with not so good credit have made mistakes in the past. Because of irresponsible spending and unrestrained charging on credit cards the interest on the cards tend to catch up with the spender and cause billing nightmares for everyone concerned. However, even after all this a bad payer can still redeem himself from his dire situation by applying for unsecured credit cards.

Unsecured cards are cards offered by banks to help people with bad credit rebuild their credit histories. After a person with bad credit can find nowhere else to get credit because of a bad credit score, he can opt to clean up and start anew with a credit card that is unsecured. What makes this different from regular credit cards is that the charges and fees on the card are much higher, simply because the bank is taking a risk on giving a person with bad credit a credit line!

For those thinking of getting unsecured cards it is important to always check the fees that the bank will charge on your card monthly and make sure that you can make the payments. Do not get prepaid cards or catalog credit cards because these will do nothing to improve your credit history. Always pay your bills on time with at least the minimum monthly charge, or more. If you are diligent and cautious when using this credit card, you can be sure that you will be improving your credit score within a couple of months.



By: Elija James