Plano, Texas (PRWEB) June 24, 2013
According to a May 25 article on the ABC News website, credit scores base predictions for the future on a consumer’s credit behavior in the recent past. Build My Scores, a credit restoration company based in Dallas, shares how these predictions are formulated.
Before a credit score is established, analysis of the credit bureau information must be completed. According to the article, this analysis is done to understand how the consumer has gotten to their current state, and what parts of that data can be used to predict their future behaviors. Since the majority of consumers will continue in the same credit behaviors, credit scores have to look carefully for consumers that may change those behaviors for better or worse.
According to the article, consumers are studied in a “two-snapshot” process. Credit score analysts look at a set of credit reports from two years ago and then another set two years later. They look at the amounts owed, how they pay and how many times they have had credit inquiries. Those consumers with frequent late payments, in an example in the article, are more likely to file for bankruptcy in the future.
Those with low credit risk in the future exhibit the commonly known good behaviors, such as making payments on time, keeping credit balances low, having years of credit experience, open new accounts only occasionally and having a good mix of credit experience.
At Build My Scores they can advise consumers on the best methods for improving credit scores. For more information, please visit their website.
To read the full ABC News article, please visit: http://abcnews.go.com/Business/credit-scores-predict-behavior/story?id=19252304#.UbsjwefqkmR.
About the company:
Build My Scores is a total credit restoration and enhancement company. Committed to delivering innovation, Build My Scores collaborates with referral partners such as mortgage, real estate, and banking professionals to help them with their clients that are facing credit challenges. Build My Scores provides credit repair help, credit repair services, and credit score repair. For more information, please visit their website at http://www.buildmyscores.com to see how they put together a tailored strategy to help clients restore their credit.