Your FICO Score - Your Road To Financial Freedom
For what it's worth, summing up a credit score meaning is a no brainer. You see your credit score or FICO score is a number between 300 and 850.
As you scan every line in this article you'll recognize that your credit bureau score (or FICO score) is not required to be offered for FREE like your credit report.
Despite that fact, The FCRA (Federal Credit Reporting Act) requires credit-reporting agencies to offer you a copy of the credit score they have calculated and given out to lenders.
In other words, you get to see what the lenders see.
And, get this: Generally, most lenders use the FICO (Fair Isaac Corporation) method to calculate your FICO credit score.
However here's something you need to know: Never ignore the fact that the score given to you by some credit agencies my not necessarily be a FICO credit score. At this point, Equifax if the only agency with the right to sell FICO scores.
If you purchase your credit bureau score from the other two major credit reporting (TransUnion or Experian) you will receive a credit score unique to that particular agency.
Now, back to what I was saying - I've got some seriously clear insights on how your credit bureau score is calculated. Listen up.
This is it in a nutshell: Your payment history makes up 35 percent of your score; all outstanding balances make up an additional 30 percent; and the length of time you've had a credit history accounts for 15 percent.
Let me explain a little bit further:
For starters your credit score is determined by how long you've had a credit history. With that in mind, know that your credit score directly impacts loans and any credit you apply for in the future.
In fact, you could be charged a higher interest rate because of your credit score.
In addition to that, the amount of interest you are currently paying on loans, credit cards, or any other revolving credit greatly affect your FICO score calculation.
Also, your FICO score is determined by how much of your available credit is currently tied up. Mixing out your credit cads will negatively impact your credit score.
Look, you should consider the effect new accounts would have on your credit score. A large number of inquiries in a short amount of time can seriously hurt your credit score.
To make your credit score even easier for you to understand - credit-reporting agencies will provide you with up to four reasons for your credit score.
Here are a few random examples…
· 01 - amount you currently owe on accounts
· 02 - level of delinquency on all accounts
· 10 - balance to credit ration on revolving accounts is too high
· 18 - number of accounts you are delinquent on
I wonder, even as you continue to read this article if you know important it is for you to understand the calculation of your FICO score.
How will you protect yourself?
Credit Repair Boot Camp
As you scan every line in this article you'll recognize that your credit bureau score (or FICO score) is not required to be offered for FREE like your credit report.
Despite that fact, The FCRA (Federal Credit Reporting Act) requires credit-reporting agencies to offer you a copy of the credit score they have calculated and given out to lenders.
In other words, you get to see what the lenders see.
And, get this: Generally, most lenders use the FICO (Fair Isaac Corporation) method to calculate your FICO credit score.
However here's something you need to know: Never ignore the fact that the score given to you by some credit agencies my not necessarily be a FICO credit score. At this point, Equifax if the only agency with the right to sell FICO scores.
If you purchase your credit bureau score from the other two major credit reporting (TransUnion or Experian) you will receive a credit score unique to that particular agency.
Now, back to what I was saying - I've got some seriously clear insights on how your credit bureau score is calculated. Listen up.
This is it in a nutshell: Your payment history makes up 35 percent of your score; all outstanding balances make up an additional 30 percent; and the length of time you've had a credit history accounts for 15 percent.
Let me explain a little bit further:
For starters your credit score is determined by how long you've had a credit history. With that in mind, know that your credit score directly impacts loans and any credit you apply for in the future.
In fact, you could be charged a higher interest rate because of your credit score.
In addition to that, the amount of interest you are currently paying on loans, credit cards, or any other revolving credit greatly affect your FICO score calculation.
Also, your FICO score is determined by how much of your available credit is currently tied up. Mixing out your credit cads will negatively impact your credit score.
Look, you should consider the effect new accounts would have on your credit score. A large number of inquiries in a short amount of time can seriously hurt your credit score.
To make your credit score even easier for you to understand - credit-reporting agencies will provide you with up to four reasons for your credit score.
Here are a few random examples…
· 01 - amount you currently owe on accounts
· 02 - level of delinquency on all accounts
· 10 - balance to credit ration on revolving accounts is too high
· 18 - number of accounts you are delinquent on
I wonder, even as you continue to read this article if you know important it is for you to understand the calculation of your FICO score.
How will you protect yourself?
Credit Repair Boot Camp
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