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Understanding Your Credit Score |
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| Your Credit Score is used by
anyone loaning you money. Credit card companies, home equity lenders, auto
loan lenders and finance companies all use a model created by Fair, Isaac
and Co, the San Rafael, California company that pioneered credit scoring 40
years ago and dominates the field today. This score is most often known as
FICO and serves as a snapshot of your credit history.
A low score can raise the price of your loan and a very
low score can mean denial of your loan completely. Here
are the approximate percentages that determine your FICO Score.
 | Payment history (35%).
The
largest factor determined on your FICO score is your basic payment
history. The number of unpaid bills you have, any bills sent to
collection, bankruptcies etc... The more recent the problem, the lower
your score.
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| Outstanding Debt (30%). Are
your cards maxed out? High balances or more precisely, balances that are
close to your credit limit can negatively effect your score. Keep your
balances below 30%. |
| Length of your credit history (15%).
How long have your accounts been open? The longer, the
better. |
| Recent inquiries (10%).
Every time you apply for credit of any kind, you create an inquiry on
your credit report. Lots of Inquiries negatively effect your score.
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| Types of credit in use (10%).
Current loans from finance companies. How many and how
much. |
Your score will range between 300 and 870. The
higher the better. As your score increases, your credit risk decreases.
Exact numbers differ by lending institution but the average high approval
score is 680 or above. Often times your score is taken from all three
credit reporting companies and the middle score or average score is
used.
Depending on the lending institution, your score can
cost you. Some lenders will charge a higher interest rate if your score is
below 600
When you apply for credit your score does not come
directly from FICO. Instead each bureau has its own version of the rating
system with its own name.
Equifax is called Beacon
Trans Union is Empirica
Experian is Experian/Fair Issac
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| Everyone needs good credit. After you reach age 18, credit becomes more
and more important. Bad credit costs you in the form of higher interest
rates, unapproved loans, and even denied rent and leases. Bad credit will
also prevent you from getting the car you want. Bad Credit will
cost you many thousands of dollars when you want to purchase a home or refinance.
So don't you want to repair your bad credit? Certainly! Repair your
bad credit by reading below.
There are three major ways to repair bad credit.
(1) You can repair bad credit
by getting the easy to use "do-it-yourself" method with a credit repair kit. This does not cost you much at all.
(2) Another method is
to hire a credit repair agency. They do charge more
but they are experienced in helping out those people who have even the most serious
problem or for those who just don't have the time to deal with it.
(3) Well, then of
course, compromise with the credit card agency for reduced payments.
These payments must be made on time and within the terms of the repayment
schedule. This may take several years and during this time, your
credit is still reported as poor. This is actually the most costly
way of repairing your credit. Also during this time period, with a
minimal payment, you will be paying basically the interest since the rate is
substantially higher and no principle be paid down, at least until you can
afford higher payment rates. You do not have to take use this method
when you can be on your way to repaid your bad credit by using this website.
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The only thing you
have to lose is your bad credit and higher interest rates.
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Just click on the above banner and
fill out the simple debt
relief form. |
Debt Advocates of America’s debt management program is the safest and
easiest way for you the consumers to become debt free. Consolidation offers
the opportunity to tap into lower interest rates resulting in one lower
monthly payment. To qualify, an individual’s dept
amount must be over $5,000.
Debt Advocates of America offers debt
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telephone and utility bills, federal and state income taxes, property taxes,
fuel bills, tuition, alimony and child support into one lower monthly
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If you are living
paycheck-to-paycheck, is stressed out about the rising cost of gas prices or
making car payments on time or how to stretch the groceries from week to
week, debt consolidation can make the difference in their life.
There |
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Web Site
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