The Use of FICO Scores in Eastpoint, Florida

In Eastpoint The FICO Score is Important

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

In Eastpoint, Florida some of the best common discussions between friends could be related to credit history. The main reason behind this is due to the fact that the score achieved by any individual would greatly affect the amount of home mortgage, car loans and many other financial services.

To put it simply, a credit history compares to a report card from Eastpoint High School (I know, we’ve all been through that) where you would get a reprimand for something low and get a reward for a high score.

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

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

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

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

  • 35% – punctuality of payment historically
  • 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 acquire a copy of your personal credit report. This can be attained from Equifax, TransUnion and Experian.

After that, prepare yourself for the misery (or fun if you’re an accountant) of examining all the numbers and being sure everything adds up to the best of your knowledge.

The main reason is because if something is wrong in your report, it’s best to get it corrected because it can take up to several months to get a update entered.

If you have serious charge card debt where the majority of your 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 time. Even if you manage 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 affects 35% of your score and it is very 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 actually 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 concerns raising your FICO score. All it takes is for you to lower your credit card debt, pay your bills on schedule 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 report. Enroll in one of their coaching programs to improve your score.

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

Category: General