The Use of FICO Scores in Hawthorne, New Jersey

In Hawthorne FICO Score is Important

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

In Hawthorne, New Jersey one of the best popular discussions amongst people is connected to credit reports. The main reason behind this is the score achieved by any consumer would substantially influence the amount of home mortgage, loans and many other financial related services.

Simply put, a credit history is similar to a report card from Hawthorne High School (I know, we’ve all been through that) where you would get a punishment for something low but rewarded for a high score.

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

There is however, 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 utilized tool by most Hawthorne banking and mortgage companies in Hawthorne.

Before engaging in the discussion on how FICO rating can be boosted, it handy to have an outline on what FICO rating is based.

, 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 own credit report. This can be attained from Equifax, TransUnion or Experian.

Next, brace yourself for the distress (or pleasure if you’re an accountant) of examining all the numbers and making sure everything adds up to the best of your knowledge.

The reason is if something is incorrect in your report, it’s best to get it fixed because it can take up to months to get a proper correction.

If you have serious credit car debt where almost all of your credit card balances are close to the credit line, it’s best if you pay them off immediately. If you need help paying off debt, call for help at 844-CARE-866.

The banks and lenders prefer a large 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.

Then, it is equally important for you to pay off your debt promptly. Even if you are able 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 schedule and every time.

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

It is always important to maintain your longest standing 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.

Even if you score a relatively high score, if your credit history is just five 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.

All in all, it’s a not rocket science 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 monitor where you are heading in your spending, mortgage and loans. 

There are experts 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 Hawthorne, New Jersey you can call toll free 844-207-3818 to get started increasing your credit score and fixing your credit report.

Category: General