In the world today, there are many reasons why one might opt to get a credit card. However, it is the management and the responsibility that comes after that many people have trouble with, especially if they happen to be horrible at money management in their waking life. A bad credit score can be the cause of a lot of other problems arising as well. In fact, with a bad credit score, many people are denied most of the things that might have been the reason why they got a credit card in the first place.
Nonetheless, with credit experts like Dr. Michael Grayson, figuring out how to approach a credit expert or to fix your credit score on your own is rather easy. Dr. Grayson is an author, entrepreneur, credit expert and a consumer advocate. He is also the CEO of Credit and Debt Management Institute, Inc. In addition to being the CEO of this company, Dr. Grayson is also the inventor of a software application that is based on proprietary algorithm, which helps fix credit almost immediately.
Dr. Grayson’s company, CDMI, is built to provide people with the financial assistance that they require. He offers loans, as well as help with credit management. Dr. Grayson’s algorithm is the best currently, and has helped many people understand not just their credit score, but also garner enough information to solve these problems on their own as well.
Furthermore, Dr. Grayson encourages that prior to hiring someone to fix your business or personal credit, there should be a number of questions that should be asked for the purpose of clarity. Nonetheless, it is also important for one to have a precise understanding of the current credit card system techniques and formula beforehand as well.
- What is FICO?
FICO stands for Fair Isaac Corporation, and was once known as Fair Isaac Company. Prior to the year 2000, the old credit system was utilized fully by every Credit Card Company and cardholder. However, since then the entire industry has shifted to the new FICO credit scoring system. This system is used by 99% of all credit repair companies make use of this new system, whereas lawyers and other professi0noals within the industry might prefer to use the old credit system.
- The Formula for a Perfect Credit Score
Dr. Michael Grayson is the reason why this remarkable formula exists and it is used for the purpose of calculating the perfect credit score (700-990). Here is the formula created by Dr. Grayson in 2001:
- Payment History= 35% = Zero Derogatory Credit(ZDC)
- Amount Owed = 40% = 2-6 Major Revolving accounts (MR)@ 1-35% Utilization
- Inquiries = 10% where, I>20 = -5, where, F < 6
- Mix of Credit = 10% = 3I + 2MR, where I= 3 x R
- Length of Credit History = 5% where, 6mos < L < 4 years
This formula is tested, tried and approved by all, and Dr. Grayson is the reason why this exists. Not only has he made sure that this formula helps you get a perfect credit score.
- The Scores You Should Have
In order to make purchases, such as buying a house or a car, you need to have a positive score. In case of having a negative score, you could be denied the ability to purchase one of the many things that you want to purchase. According to Dr. Michael Grayson, here are some examples:
- Score needed to buy a house: 620
- Score needed to start a business with the government: 680
- Score needed to borrow money (loans): 720
- How to eliminate debt without payment, settlement, bankruptcy, consumer credit counseling or debt consolidation?
According to Dr. Michael Grayson and his algorithm, eliminating debt without making a payment is possible with the use of debt filtration. What is debt filtration, you might wonder? This is what it means in the words of Dr. Grayson: “Debt filtration is a system of 48 government laws and programs that help you to eliminate or greatly reduce your debt while simultaneously cleaning your credit using Cancelation & Forgiveness.” In the modern credit scoring era, the only way to guarantee a zero derogatory credit is by using debt filters. Credit repair will never guarantee ZDC.
Moreover, these are some of the things that everyone should know prior to dealing with a credit expert to help clear a bad credit score, or to ensure that they have a perfect credit score.