It S Your Credit Score

Category: Finance, Credit.

Our credit history can make a big mark on how worthy we are when it comes to borrowing money. Whether we are a good or bad payer, this can be seen in our credit history.

It s like giving people an idea on how we pay our debts. But as years passed the credit history has been over rated and the real deal with credit reports has not been seen. It s your Credit Score. What do I mean about that? The credit score ranges from 300 to 850, of course the higher the credit score is the better. Then, Fair Issac comes up with a number for you.

Fair Isaac takes information from your credit report, then analyze the different pieces of information from your credit report and how long ago those things occurred. This score is one vital factor on the lender s decision whether to give you re a mortgage or not. The answer is yes. Another question to take into account is, Do most lenders use these scores? As survey says that 70% use these FISCO( Fair Isaac and Co) scores. How do most people do? Thus, this means that it plays a vital role in our credit scores.

Let s take into consideration the bankruptcies that are happening, From the scale given 300 to 850, the average score is about 72Below that, you might encounter problems on getting the trust of lenders. However, Fannie Mae and Freddie Mac advices lenders to get more information from the borrowers to further understand the sources of problems before they lend money. Though 20% of people have a credit score lower than 720, it doesn t mean that they can t convince lenders to lend some money. On the other side, if you got a credit score higher than 780, they you are considered elite. About 35% of your score will go to your bill- paying record. In addition to that information, only one to two percent of consumers credit scores are in 80 Now, let s talk about the factors that will make a big impact in your credit score. If you pay your bills in time, then you definitely get a perfect 35% .

Remember, no matter how, one mistake small or big it may seem, can make a big chaos. However, if you fail on this part, this might hurt your credit score. Put it this way, 30 consecutive days of late payments is worse than one sixty day late. Now, let s discuss, how much do you owe? These patters are used by most lenders to know your credibility in paying bills. This is 30% into consideration. The closer you are in maxing out your credit card, the lower score you ll get for this.

It is relative to how much money or credit you have on your credit cards. How long you ve managed credit? This is what we usually advice people to do. This is 15% when taken into consideration and one of the most interesting parts. Instead of having loads of credit cards in your wallet, why not cut off the other and maintain the credit card holding the best and oldest record. The fact that you can manage well all different kinds of credits is a good point. Next is, Mix of credit, 10% of the total score.

Next is the Pursuit of new credit, also get the 10% of the totality. Indeed, it is now considered as a smart move. Other media might say that this can hurt you but if you ll think about it, that s the concept many years ago but now, having different kind of credit is okay. The main key here is Moderation and management and you ll see everything will turn out perfectly. When you talk to your lenders, you can use your credit scores information. With all of this information at your hand, you ll surely have a guide on your credit scores. At least, you will not act like a beginner in this situation, because you will have the knowledge of how all of this works.

Give yourself a maximum of 6 months before doing so. Apparently, you can also work on your credit scores before applying for credit. Just be wise all the time and use all the information you get because it will always be vital in the end. If you have more questions and want more information on improving credit score. , please visit this site