The Use of FICO Scores in Pernell, Oklahoma

In Pernell Your FICO Score is Important

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

In Pernell, Oklahoma among the best popular discussions amongst friends is related to credit reports. The main reason for this is because the score achieved by any person would significantly impact the amount of mortgage, loans and many other financial services.

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

In contrast to what lots of folks in Pernell believe, there is no one universal way of classifying credit score where the last time you took an extra dime from the cashier would be recorded on your credit history.

There is however, 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 utilized tool by most national banking and mortgage companies in Pernell.

Before engaging in the discussion on how FICO rating could be boosted, it valuable to have an idea on what 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 initial step to improving a FICO rating is to get a copy of your personal credit report. This can be attained from Equifax, TransUnion and Experian.

Then, prepare yourself for the agony (or delight if you’re an accounting professional) of examining all the numbers and being sure everything adds up to the best of your recollection.

The reason is if something is incorrect in your report, it’s best to get all of them fixed because it can take up to months to get a proper correction.

If you have serious charge card debt where most of your credit card balances are close to the credit line, it’s best if you pay them off immediately. 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 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 time and every time.

The punctuality of your payment takes up 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 on schedule 3 years ago.

It is always important to maintain 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 actually is.

For example, even though you score a relatively high score, if you credit history is just five 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 annual interest rate.

All in all, it’s a not nuclear physics when it concerns raising your FICO score. All it takes is for you to decrease your credit card debt, pay your bills on time and keep an eye on where you are heading in your spending, mortgage and loans. 

There are experts at Credit Repair can help you better understand your credit report. Enroll in one of their coaching programs to improve your score.

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

Category: General