Fico Score – It Can Be Repaired
If you are currently feeling overwhelmed by the amount of unsecured debt facing you, you are not alone. The unpaid, high credit card balances will surely damage your Fico Score.

What is a FICO SCORE?
The FICO score was developed years ago by the Fair Isaac Company. It is used to help lenders determine if a person is a safe credit risk. They have a proprietary mathematical formula that generates these scores based on knowledge acquired from lenders and other entities with which a consumer does business.  They get the information from the three major credit reporting agencies, Experian, Trans Union and Equifax. They use these five factors to calculate the FICO score. How well you pay, your balances owed, how long you have had credit and your new credit amounts and the types of credit you use.

There are many ways that this score is damaged. High balances carried month to month on unsecured loans are just one of them. Credit card debt can ruin a credit score very quickly. This is why a lot of Americans are seeking professional help with debt relief.

The main goal of debt relief is to put you in a position where credit repair is then possible. You can find such professionals all over the web, while they can do nothing about your FICO Scores they can help you to get out form under a mountainous debt load. Once this is cleared up, rebuilding you good credit rating will be possible.

Bankruptcy is one of the first options people consider when the debts get too overwhelming but it is not always the best option, especially when it comes to your FICO Score. A Bankruptcy, whether it is a chapter 7 or 13 will stay on your credit report from 5-12 years. During this time getting new credit will be next to impossible. And getting new credit even in small amounts is the only way to increase the FICO Score.

Other options like debt consolidation or debt settlement will take a bit more time but they will leave you in a position to start the rebuilding process a lot sooner. These services are great because not only do you get help with your debt management for the present but the skills you learn while participating in the programs will help you to avoid a repeat of the financial disaster in the future. Call one and speak with a representative at debt consolidation America today to see if one of these options could get you on your way to a better FICO Score today.