The Use of FICO Scores in Kelleysburg, Pennsylvania

In Kelleysburg The FICO Score is Important

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

In Kelleysburg, Pennsylvania some of the most popular discussions with friends would be connected to credit reports. The main reason behind this is the score achieved by any person would greatly impact the amount of mortgage, loans and many other financial related costs.

Simply put, a credit history compares to a report card from Kelleysburg High School (I know, we’ve all been through that) where you would get a punishment for a low grade but get a reward for a good grade.

Contrary to what many individuals in Kelleysburg believe, there is not 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 history.

There is, a widely used well known credit score in the USA, 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 adopted tool by most consumer banking and loan brokers in Kelleysburg.

Before engaging in the discussion on how FICO rating may be increased, it handy to have a rough idea on what FICO rating is based upon.

, 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% – types of credit used (installment, revolving or consumer finance).
  • 10% – recent application for credit and/or amount of credit obtained recently.

The initial step to improving a FICO rating is to get a copy of your own credit report. This can be attained from Equifax, TransUnion and Experian.

After that, prepare yourself for the distress (or pleasure if you’re a bookkeeper) of examining all the numbers and ensuring 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 corrected because it can take up to several months in order to get a proper correction.

If you have serious Credit Card debt where many of your credit card balances are close to the credit limit, 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 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.

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 every month.

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 maintain 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 actually is.

For example, even if you score a relatively high score, if you credit history is just a few years as compared with 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 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 specialists at Credit Repair can help you better understand your FICO score. Enroll in one of their coaching programs to improve your score.

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

Category: General