The Use of FICO Scores in Davenport, Nebraska

In Davenport Your FICO Score is Important

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

In Davenport, Nebraska among probably the most frequent discussions between friends is related to credit history. The reason behind this is the score achieved by any individual would substantially impact the amount of mortgage, loans and many other financial costs.

Simply put, a credit report compares to a report card from Davenport High School (I know, we’ve all been through that) where you would get a punishment for a low grade or rewarded for a high score.

In contrast to what many individuals in Davenport believe, there is no one universal way of classifying credit score where the last time you took an extra dime from the cashier would be recorded on your credit report.

There is, a widely used well known credit score in the United States, 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 accepted tool by most Davenport banking and loan companies in Davenport.

Before engaging in the discussion on how FICO rating may be improved, it valuable to have a rough idea on what your FICO rating is based on.

Simply speaking, 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% – types 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 credit report. This can be attained from Equifax, TransUnion and Experian.

Then, brace yourself for the agony (or fun if you’re a bookkeeper) of examining all the numbers and being sure everything adds up to the best of your knowledge.

The reason is due to the fact that if something is incorrect in your credit history, it’s best to get them corrected because it can take up to months to get a proper correction.

Furthermore, if you have serious credit Card debt where a lot of your Credit Card balances are near 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.

Next, 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 each time.

The punctuality of your payment takes up 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 on time 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 a few 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 annual interest rate.

In conclusion, it’s a not nuclear physics when it comes to raising your FICO score. All it takes is for you to reduce your total debt, pay your bills in a timely manner and keep an eye on where you are heading in your spending, mortgage and loans. 

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

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

Category: General