What Does Your Credit Score Mean?
Your credit score is a 3 digit number that is assigned as a convenient way for lenders to understand how credit worthy you are. It is often used to help them decide whether you qualify for credit and what the associated interest rate will be.
Anytime you apply for credit, your lender is likely to request a copy of your credit report which includes lots of information about your current credit standing. It will also include the numeric credit score. Since lenders can easily get their hands on this information, it is beneficial to you if you review the details yourself from time to time.
There are three companies that generate credit scores: Equifax, TransUnion, and Experian. They generate a number between 300 and 850. This number is often called the FICO score, which stands for Fair Isaac Corporation.
Here is a quick breakdown of the FICO score values:
• 720-850 – this is the range of average scores and better, a very good range
• 700-719 – rates may not be as good as above, but your credit is still decent
• 675-699 – at this level you are starting to lose out on the best deals
• 620-674 – you cannot get great terms here as loans will cost you extra
• 560-619 – this is really subprime so you’ll have to work to improve
• 500-559 – it’s going to be tough to get any loan
You can find another analysis of the numbers on our credit score rating scale page.
Among the factors that determine your score include your own credit history, the amounts you owed, how much remains, the duration of credit history, and the type of credit you have used.
You can improve your score by paying down any debts, staying well under your credit limit, and pay all bills before due dates.
Explore other resources on this website to learn more about your credit score and how to improve it.
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Categories: Credit Score Articles Tags: Credit Score, credit score factors, Credit Union, FICO, FICO score, history, used
Never pay for your Credit Score or FICO Score
Never pay for your credit report or credit score! Why pay for something that you can get for free?’
Yes you get to get your credit report from the three credit bureaus every year. Watch this video and learn more.
Categories: Credit Score Videos Tags: Credit, Credit Score, FICO, Free Credit Report, never, none, Score, something, year
Factors That Make Up Your Credit Score
Precise details of a FICO (Fair Isaac Corporation) score are never publicized. After having seen your score, do you wonder what factors credits scores are based on?
Being behind on payments always negatively affects your credit score. Payments that are received more than 30 days after due date is considered late. Majority of the creditors report all payments that are late and sort them out in different batches. So, if you are late even just for a day, there is a possibility that your account will be reported alongside those that are 59 days late. Yes, that can happen.
Your credit balance gives your lenders an idea of how much cash you have in hand and your credibility as a paying borrower. High balances create a negative impact on your credit score.
Don’t resort to opening several credit card accounts at a time as this may cause an issue with your lender. Because of such, you might be subjected for multiple credit inquiries since it will seem that you are strapped for cash, which isn’t doing any good to your credit score.
If your credit cards are maxed out, not only you will suffer but so will your credit score. Make sure that your balances are less than 35% of the available credit. It can sound pretty hard, but it’s totally achievable.
The longer your credit record is, the better it is for your rating. Have different kinds of credit card and never close down old ones as these will help you improve your score.
With a little more time and effort you can pretty much increase your score. Don’t let your credit score overwhelm you. You can always do something about it if you’re unsatisfied.
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Categories: Credit Score Articles Tags: balances, cash, Credit Score, credit score factors, FICO, FICO score, late, payments
The Purpose Of Credit Score
Your credit score is a 3 digit number which is assigned as a convenient way for the lenders to be able to understand how credit worthy they will consider you to be. It aids them in deciding whether you qualify for credit and what the associated interest rate will be.
When you apply for credit, your lender will request a copy of your credit report which includes lots of information about your credit rating as of the moment. It will also involve the numeric credit score. Given that lenders can easily get their hands on this information, it is advantageous to you if you review the details yourself every now and then.
There are three companies that yield credit scores: Equifax, TransUnion, and Experian. They generate a number between 300 and 850. This number is often called the FICO score, and it stands for Fair Isaac Corporation.
Here is a quick breakdown of the FICO score values:
• 720-850 – this is the range of average scores and better, a very good range
• 700-719 – rates may not be as good as above, but your credit is still decent
• 675-699 – at this level you are starting to lose out on the best deals
• 620-674 – you cannot get great terms here as loans will cost you extra
• 560-619 – this is really subprime so you’ll have to work to improve
• 500-559 – it’s going to be tough to get any loan
You can stumble upon another analysis of the numbers on our credit score rating scale page. Included in the factors that determine your score include your own credit history, the debts you owed, how much is left, the duration of credit history, and the type of credit you have used.
You can boost your score by paying down any debts, staying well under your credit limit, and pay all bills promptly.
Explore other resources that you may come across in this website to learn more about your credit score and how to boost it.
Find More Credit Score Articles
Categories: Credit Score Articles Tags: Credit Rating, Credit Score, credit score purposes, credit standing, debts, FICO, lenders, range
When I got the score from one of those free services?
Question by Go with the flow: When I got the score from one of those free services?
It said this is a CE score used by lenders
What does the CE stand for?
I dug and found out that their (Quizzles) scoring model is completely different
They add Amount of Cash Flow to the formula
Which takes the amount of money you earn
The site asks you your salary, and I lied and put almost none and my score with them was disastrous.
They say they use a CE scoring model
Does the CE stand for the model used by mortgage lenders ?
What does it stand for?
Best answer:
Answer by timothy p
any score other than FICO is useless. The FICO name brand score is the one lenders use. It doesn’t include your income.
Your income will be considered in your ability to repay a loan but is irrelevant when considering how well you repaid loan is the past.
If you want your real score, go to myfico.com. They will charge for this score but it will be much more accurate. Keep in mind that some lenders give heavier weight to certain types of accounts so your score still may not match exactly. ex. My credit card company orders a custom FICO that gives heavier weight to how well I repay revolving accounts. A car loan may give heavier weight to how well you repay installment accounts… The only time I have had my FICO match exactly was at my credit union. The others were close though.
What do you think? Answer below!
What is Considered a Good Credit Score These Days
Credit is one thing we all can’t live with, yet can’t live without, at the same time. As much as we like the thought of not owing anything to anyone, there are inevitable times that borrowing is a grave need. And when that time comes, good credit score is certainly of help.
What credit score is considered good, you may ask. Let’s start off with defining a couple of things. You must know, though, that this article will focus on the most common type of credit score in America, FICO. FICO scores depend upon the information handed out by the three major credit reporting agencies, namely TransUnion, Experian, and Equifax.
All the agencies utilize FICO software in calculating credit score. Also, they have their own databases which kind of give trouble to some, considering you may have 3 different FICO credit scores that depend on the bureau that is used. However, the credit scores typically lie in a rather narrow range.
Scores range from 300 to 850. When you look into myfico.com, you will see that the median score is 723 Median defines the lines between the bottom and top halves. If you happen to have a credit score higher than 723, then you are on top half. It almost always equals a ‘good’ credit score.
However, let must be real. A ‘good’ credit score should equal something that comes with good loan rates. Say, 680 is considered to be the lower limit for prime credit, then if you go beyond such score, your score is ‘good’. However, it must increase before you can get better rates that are intended for those who have ‘good’ and even ‘excellent’ credit scores.
The most telling information is coming from Informa Research Services. They are the ones that correlated FICO scores to loan rates. Based on a 30yr fixed mortgage example, they found FICOs from 680-699 averaged 4.9% APR, those from 700-759, 4.723%, and those with 760-850, 4.501%. Since those with 760+ were categorized in the best loan rate level, should we need to draw a line at where ‘good’ begins, 760 seems perfect just as any.
If you translate it to dollars and cents on a $ 300,000 loan example, the 760+ consumer will be paying over $ 14,000 and almost $ 26,000 less over the life of their loan as compared to the next two lower scoring groups respectively. Anyway you look at it, that is ‘good.’
Categories: Credit Score Articles Tags: Credit Score, FICO, Good Credit Score
What is FICO? What Credit Score is Good, Bad or Average?
Among the many numbers that accompany us throughout life, our credit scores are one of the most important. The usual range of credit score varies from 350-800 while some model range up to 900. People with higher than 750 are able to attain best interest deals and insurance premiums while consequently, people having low scores get higher interests and higher premiums. In order to have your credit score improved, one must be able to understand what makes up the rating as a whole.
Watch this video and learn.
Video Rating: 5 / 5
How to Get a Free FICO Credit Score
Credit score is one of the most important elements in your financial life. It is a great weapon when you are looking to borrow and get good-looking interest rate. You also use it when you want to rent or want to get employed.
Knowing your credit score used to costly, but nor you can see it without any charge. Watch this video and learn how you can check your own credit score, free!
Categories: Credit Score Videos Tags: Credit, FICO, Free, Score
ICB Trade Lines – Piggyback Credit Increases FICO Score
Many people are against the concept of piggybacking. Piggybacking is when someone with poor credit is authorized to use a credit card of another person having a good credit history.
Thus, they can benefit from having the payment history of the authentic cardholders show up on their credit reports, leading to a boost in their credit scores. It’s like they are given a free ride. But creditors are complaining as it is pure fraud and is contradictory to the real credit scoring system.
Spare some time to watch this video and know for yourself what’s in it behind this system flaw.
Categories: Credit Score Videos Tags: Credit, Credit Score, FICO, Piggyback, Score, System
What FICO Score would you give to the US Government?
Would like to know more regarding FICO score? Do you want to enhance your knowledge about credit score?
Most of us are very concern in terms of how they can improve it. By watching this video, you will have the chance to understand better the different perspective of people with this kind of process.
You will definitely enjoy and learning more on the important things you have to remember about FICO score.
So have fun on what FICO score would you give to the US government?
Categories: Credit Score Videos Tags: FICO, give, Government, Score, would