The Use of FICO Scores in Spring Church, Pennsylvania

In Spring Church FICO Score is Important

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

In Spring Church, Pennsylvania among probably the most frequent discussions with friends is related to credit scoring. The reason for this is due to the fact that the score achieved by any individual would substantially affect the amount of home mortgage, loans and many other financial related services.

Simply put, a credit score is like a report card from Spring Church High School (I know, we’ve all been through that) where you would get a reprimand for something low but a reward for a high score.

In contrast to what lots of people in Spring Church believe, there is no one universal way of ranking credit report where the last time you took an extra 5 pennies from the cashier would be recorded on your credit report.

There is though, a widely used popular 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 adopted tool by most Spring Church banking and mortgage brokers in Spring Church.

Before engaging in the discussion on how FICO rating may be boosted, it is worthy 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 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% – kinds 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 or Experian.

Then, prepare yourself for the distress (or fun if you’re a bookkeeper) of examining all the numbers and making sure everything adds up to the best of your understanding.

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

Secondly, if you have serious credit card debt where a lot 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 any excess credit card debt would definitely increase the FICO score as it impacts 30% of the FICO score.

Then, 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 schedule and each time.

The punctuality of your payment impacts 35% of your score and it is very important 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 keep your oldest 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.

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

In conclusion, it’s a not nuclear physics when it concerns raising your FICO score. All it takes is for you to reduce your total debt, pay your bills in a timely manner 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 history. Enroll in one of their coaching programs to improve your score.

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

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