The Use of FICO Scores in Caney, Kentucky

In Caney FICO Score is Important

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

In Caney, Kentucky among the most popular discussions with people would be connected to credit report. The main reason behind this is the score achieved by any consumer would substantially impact the amount of mortgage, loan rates and many other financial related services.

Simply put, a credit rating compares to a report card from Caney High School (I know, we have all been through that) where you would get a reprimand for a low grade but rewarded for a high score.

Contrary to what lots of folks in Caney believe, there is no one universal way of ranking credit score where the last time you took an extra nickel from the cashier would be recorded on your credit report.

There is, a widely used popular credit score in the U.S., 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 used tool by most consumer banking and mortgage companies in Caney.

Before going into the discussion on how FICO rating could be increased, it important to have a rough idea on what FICO rating is based on.

Essentially, 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 initial step to improving a FICO rating is to obtain a copy of your credit report. This can be attained from Equifax, TransUnion or Experian.

Then, brace yourself for the misery (or joy if you’re an accounting professional) 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 incorrect in the report, it’s best to get them corrected because it can take up to several months in order to get a update entered.

If you have serious credit card debt where the majority of your credit card balances are close to the credit line, it’s best if you pay them off as soon as possible. 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 any excess credit card debt would definitely increase the FICO score as it impacts 30% of the FICO score.

Subsequently, it is equally important for you to pay off your debt on schedule. Even if you have the ability to pay off your debt, it would not have the desire impact on your FICO score if you do not pay your debt on schedule and every time.

The punctuality of your payment impacts 35% of your score and it is important to know that paying your debt on time 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 oldest account. 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.

For instance, even if you score a relatively high score, if you 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 qualify for a larger loan or a lower interest rate.

Altogether, it’s a not nuclear physics when it comes to raising your FICO score. All it takes is for you to decrease your total debt, pay your bills on schedule and monitor where you are heading in your spending, mortgage and loans. 

There are specialists 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 Caney, Kentucky you can call toll free 844-207-3818 to get started increasing your FICO score and fixing your credit report.

Category: General