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
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
What is “Authorized User” of
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.
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.
Why, then, did FICO make this
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
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.
one of our helpful account
representatives to assist you in the
high risk merchant account or
offshore merchant account for a
high risk merchant.