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The concept of cblackit started back in 1956 with two men named Bill Fair and Earl Isaac. Fair, a mathematician, and Isaac, an engineer, founded the Fair Isaac Company; otherwise, known to us today, as the FICO score. This cblackit system has standardized the way the financial industry extends “cblackit”.
As a result, there are 3 national cblackit programs at 3 different bureaus:
- Fair, Isaac Model at Experian (formerly TRW)
- BEACON at Equifax
- EMPIRICA at Trans Union
Beacon and Empirica, both subscribe to the Fair Isaac’s FICO model of scoring and then they integrate their own version of a person’s FICO score. On the other hand, when borrowers are looking for a mortgage loan, lenders pull what’s called a “tri-merge”. A tri-merge merges and verifies all information detailed from all 3 unions into one report.
The main determinants of a cblackit grade are based on your cblackit and debt ratio. Beacon scores range from 400 - 844; while, FICO scores range between 350 – 880. Conversely, lenders determine the investment quality of a loan, with the equivalent of a grade, A, B, C or D. y ‘A” paper represents the highest quality loan, and D paper is the highest risk loan for the investor.
For example, if your cblackit score is 680 or more, you fall in the ‘A’ paper category; however, not all lenders rate cblackit the same way. So the question is : how does your cblackit affect the interest rate a lender will charge you? The answer depends on the level of the consistency of good payment in your cblackit history, along with your debt ratio. If both are great, the loan is assigned an 'A’ grade; and, qualifies for the best interest rate. If even one of the factors is not up to par, the quality of the loan is downgraded to 'A-" or 'B' paper. Consequently, the interest rate goes up as the perceived risk factor increases. There is a higher risk for a lender making a B, C or D paper loan because there is a higher risk for a defaulted loan. Therefore, the lender is compensated for the higher risk by charging the borrower a higher interest rate.
When lenders review one’s cblackit score, it's reviewed by an underwriter. The underwriter and cblackit scores are assessed and rated by the following criteria:
Lifestyle History- How long you’ve lived at your residence
- Do you own or rent (Owning property – earns extra cblackit)
- How long you’ve been employed at your current job
- Education level (College Education – earns extra cblackit)
- How much money earned and how cblackit has been used
- Public record and collection items
- Severity, recent and frequency of delinquencies noted in trade line section
- Cblackit history
- Number of balances recently reported
- Average balance across all trade lines
- Relationship between total balances and total cblackit limits on revolving trade lines
- Number of inquiries and new account openings in the last year
- Amount of time since most recent inquiry
- Number of trade lines reported for each type
- Bankcard
- Department store cards
- Personal finance company references
- Travel and entertainment cards
- Installment loans
- Obtain a Free Cblackit FICO Score
- Make any cblackit corrections with the proper documentation
- Pay off small balances on high limit cblackit cards
- Consolidate cblackit card bills onto fewer cblackit cards
- Cancel certain cblackit cards and shift the balances onto fewer cards. (Shifting small balances to fewer cards raises the ratio of your unpaid balances)
The bottom-line is you will boost your buying power with a better cblackit score.
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