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FREQUENTLY ASKED QUESTIONS ABOUT NEW REPLICA CREDIT FORMULAS

There may be sudden changes in some of the credit card formulas followed by your company, from time to time, which you should be aware of. The credit card holders should find out how these changes will affect them or their business and their scores. If your present plan is not longer viable for you then speak to your financial advisor and change to a plan that is suitable for you. Here are some FAQ’s related to it:

1)    How are the consumers impacted due to these changes?

The credit score of the consumers will be lower and this may increase later. Therefore, the credit score of the consumers will lose some points. However, the surprising fact is the scores of those customers who have high balances and late payments will increase significantly.

2)    What is “Authorized User” of credit accounts?

Several times creditors permit their principal users to attach secondary users with their accounts without taking the pain of verifying the credit history of the second person. This second person not is a valid user and therefore is called as the “Authorized User” of the credit account. This is causing high risk for the real owner of the credit account and is being removed.

3)    How many numbers of people will get impacted due to the change?

According to reports from credit agencies, at least 33% of the Americans are an authorized user of another account, which means that about a hundred million people in America get affected by the new formulas. It is very important for every person to take care that his or her credit score is as high as possible. A huge drop in the credit score of such a large number of people will have a big negative effect on the entire banking industry.

4)    Why, then, did FICO make this rule?

This change was done by FICO so that each individual will fix his or her problem by themselves and not the companies. There have been many cases where credit card companies have sold access to authorized user accounts to increase the credit score of that person. It would cost the individual many thousand dollars which will harm them greatly.

5)    Without this facility how is possible to establish one’s credit?

Though, authorized user is not an option now, business owners who want their credit scores to increase should obtain a credit line of their own and keep it intact. Paying their bills on time or making full payment every month will increase the credit scores rapidly. Therefore, any individual should obtain a credit card and use it to pay for the bills that he or she was initially paying by cash. At the end of the month they should clear their entire bill which will increase the credit score, although the credit card company will not be too happy. A few people with little or no credit use “Gas Credit Cards” to improve their credit scores. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.