The Use of FICO Scores in Oakwood, Oklahoma

In Oakwood The FICO Score is Important

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

In Oakwood, Oklahoma one of probably the most frequent discussions amongst people would be connected to credit reports. The reason for this is due to the fact that the score achieved by any person would substantially impact the amount of mortgage interest, car loans and many other financial related costs.

Simply put, a credit history compares to a report card from Oakwood High School (I know, we’ve all been through that) where you would get a reprimand for a poor performance and a reward for a high score.

Contrary to what lots of people in Oakwood believe, there is no one universal way of ranking credit rating where the last time you took an extra dime from the cashier would be recorded on your credit report.

There is though, a widely used popular 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 accepted tool by most banking and mortgage companies in Oakwood.

Before getting involved with the discussion on how FICO rating may be increased, it important to have an idea on what your FICO rating is based on.

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

After that, brace yourself for the distress (or delight if you’re a bookkeeper) of examining all the numbers and being sure everything adds up to the best of your understanding.

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

Secondly, if you have serious Credit Card debt where most of your card balances are at the credit line, it’s best if you pay them off asap. 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.

Subsequently, it is equally important for you to pay off your debt on time. 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 time and every month.

The punctuality of your payment affects 35% of your score and it is 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 oldest 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 is.

For instance, even though you score a relatively high score, if you credit history is just a few years when 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 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 decrease your credit card debt, pay your bills on schedule and monitor where you are heading in your spending, mortgage and loans. 

There are specialists 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 Oakwood, Oklahoma you can call toll free 844-207-3818 in order to get started increasing your credit score and fixing your credit report.

Category: General