The Use of FICO Scores in Paradise Hill, Oklahoma

In Paradise Hill Your FICO Score is Important

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

In Paradise Hill, Oklahoma among the best common discussions amongst friends is connected to credit history. The main reason behind this is because the score achieved by any individual would substantially affect the amount of home mortgage, loans and many other financial services.

Simply put, a credit score is like a report card from Paradise Hill High School (I know, we have all been through that) where you would get a punishment for something low but rewarded for a high score.

Contrary to what lots of people in Paradise Hill believe, there is no one universal way of categorizing 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 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 banking and mortgage brokers in Paradise Hill.

Before engaging in the discussion on how FICO rating could be increased, it is worthy to have a rough idea on what 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 in the past
  • 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 very first step to improving a FICO rating is to get a copy of your credit report. This can be attained from Equifax, TransUnion and Experian.

Next, brace yourself for the misery (or joy if you’re a bookkeeper) of examining all the numbers and ensuring 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 all of them corrected immediately because it can take up to months to get a correction.

Secondly, if you have serious Credit Card debt where most of your card balances are at the credit limit, 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 high balance credit card debt would definitely increase the FICO score as it impacts 30% of the FICO score.

Afterward, 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 time and every time.

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

It is always important to keep 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 a few 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 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 time 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 score. Enroll in one of their coaching programs to improve your score.

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

Category: General