The Use of FICO Scores in Bradenton Beach, Florida

In Bradenton Beach Your FICO Score is Important

Here are the Best Ways to Improve Your Credit Report FICO Score 

In Bradenton Beach, Florida some of probably the most common discussions amongst people would be related to credit report. The reason behind this is because the score achieved by any consumer would substantially influence the amount of mortgage, loan rates and many other financial costs.

To put it simply, a credit score is similar to a report card from Bradenton Beach High School (I know, we have all been through that) where you would get a reprimand for something low but rewarded for a high score.

Contrary to what most people in Bradenton Beach believe, there is no one universal way of classifying credit report where the last time you took an extra 5 cents from the cashier would be recorded on your credit history.

There is however, a widely used popular credit score in the USA, commonly known as FICO or Fair Isaac Corporation. FICO score basically indicates the likelihood of a person to default on a loan and this is a commonly embraced tool by most national banking and mortgage brokers in Bradenton Beach.

Before getting involved with the discussion on how FICO rating may be increased, it valuable to have a rough idea on what your FICO rating is based on.

Basically, FICO rating is separated into a few statistical components where these components are made up from:

  • 35% – punctuality of payment in the past
  • 30% – the amount of debt, expressed as the ratio of current revolving debt (credit card balances and others) to total available revolving credit (credit limits).
  • 15% – length of credit history.
  • 10% – kinds of credit used (installment, revolving or consumer finance).
  • 10% – recent search for credit and/or amount of credit obtained recently.

The very first step to improving a FICO rating is to acquire a copy of your personal credit report. This can be attained from Equifax, TransUnion or Experian.

Then, prepare yourself for the torment (or delight if you are an accountant) of going through all the numbers and making sure everything adds up to the best of your recollection.

The main reason is if something is wrong in your credit report, it’s best to get them corrected because it can take up to several months in order to get a proper correction.

Next, if you have serious credit Card debt where the majority of your credit card balances are close to the maximum, it’s best if you pay them off as soon as you can. If you need help paying off debt, call for help at 844-CARE-866.

The banks and lenders prefer a significant gap between a credit card balance and the credit limit, approximately a ratio of 40% between balance/limit. Paying off high balance credit card debt would definitely increase the FICO score as it impacts 30% of the FICO score.

Next, it is equally important for you to pay off your debt on schedule. Even if you manage to pay off your debt, it would not have the impact you want on your FICO score if you do not pay your debt on time and each time.

The punctuality of your payment affects 35% of your score and it is important to know that paying your debt on schedule NOW is outweighed by the fact that you paid your debt in a timely manner 3 years ago.

It is always important to keep your longest standing account. Because the longer you have your financial history established; the easier it is for the creditors or banks to know how reliable your FICO score is.

Even if you score a relatively high score, if your credit history is just 5 years as compared to an average rating with a credit history of 30 years, the person with the longer credit history would possibly obtain a larger loan or a lower interest rate.

Altogether, it’s a not rocket science when it concerns raising your FICO score. All it takes is for you to reduce your credit card debt, pay your bills on time and keep an eye on where you are heading in your spending, mortgage and loans. 

There are professionals at Credit Repair can help you better understand your credit history. Enroll in one of their coaching programs to improve your score.

Even if you don’t live in Bradenton Beach, Florida you can call toll free 844-207-3818 to get started increasing your credit history and fixing your credit report.

Category: General