The Use of FICO Scores in Manila, Kentucky

In Manila Your FICO Score is Important

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

In Manila, Kentucky one of probably the most popular discussions amongst people would be connected to credit rating. The reason behind this is the score achieved by any person would substantially affect the amount of home mortgage, car loans and many other financial related costs.

To put it simply, a credit rating is similar to a report card from Manila High School (I know, we have all been through that) where you would get a punishment for something low and rewarded for a good grade.

In contrast to what many individuals in Manila believe, there is not one universal way of classifying credit history where the last time you took an extra 5 pennies 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 utilized tool by most national banking and in the credit industry in Manila.

Before getting involved with the discussion on how FICO rating can be increased, it handy to have an outline on what your 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% – 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 or Experian.

Next, brace yourself for the misery (or delight if you are an accountant) of examining all the numbers and being sure everything adds up to the best of your understanding.

The reason is because if something is incorrect in the report, it’s best to get all of them corrected immediately because it can take up to months in order to get a correction.

Furthermore, if you have serious credit card debt where a lot of your credit card balances are close to the maximum, it’s best if you pay them off as soon as you can. 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 maxed out 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 have the ability 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 month.

The punctuality of your payment takes up 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 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.

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 receive a larger loan or a lower annual interest rate.

Altogether, it’s a not nuclear physics when it pertains to 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 history. Enroll in one of their coaching programs to improve your score.

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

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