The Use of FICO Scores in Lewistown, Illinois

In Lewistown FICO Score is Important

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

In Lewistown, Illinois among probably the most common discussions with people would be connected to credit history. The main reason behind this is because the score achieved by any individual would substantially affect the amount of mortgage, loans and many other financial costs.

To put it simply, a credit score compares to a report card from Lewistown High School (I know, we’ve all been through that) where you would get a punishment for a low grade or get a reward for a good performance.

In contrast to what many individuals in Lewistown believe, there is not a single, universal way of ranking credit report 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 U.S., 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 utilized tool by most national banking and loan brokers in Lewistown.

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

Basically, 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 application for credit and/or amount of credit obtained recently.

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

Then, brace yourself for the torment (or joy if you’re an accounting professional) of going through all the numbers and being sure everything adds up to the best of your knowledge.

The reason is because if something is wrong in the report, it’s best to get it corrected because it can take up to several months in order to get a correction.

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 large 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 promptly. 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 time and every time.

The punctuality of your payment impacts 35% of your score and it is vital 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 maintain 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.

For instance, even though you score a relatively high score, if you credit history is just 5 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.

In conclusion, it’s a not nuclear physics when it pertains to raising your FICO score. All it takes is for you to reduce your credit card debt, pay your bills on schedule and keep track of 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 Lewistown, Illinois you can call toll free 844-207-3818 to get started increasing your FICO score and fixing your credit report.

Category: General