The Use of FICO Scores in Victor, West Virginia

In Victor Your FICO Score is Important

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

In Victor, West Virginia some of probably the most frequent discussions among friends would be connected to credit history. The reason for this is due to the fact that the score achieved by any consumer would greatly influence the amount of home mortgage, car loans and many other financial costs.

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

In contrast to what many individuals in Victor believe, there is no one universal way of ranking credit score 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 adopted tool by most banking and mortgage companies in Victor.

Before engaging in the discussion on how FICO rating might be improved, it valuable 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 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% – varieties 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 obtain a copy of your own credit report. This can be attained from Equifax, TransUnion or Experian.

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

The reason is if something is wrong in your credit report, it’s best to get it fixed because it can take up to several months in order to get a update entered.

Secondly, if you have serious Credit card debt where the majority of your Credit 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 significant 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.

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 desire impact on your FICO score if you do not pay your debt on time and every time.

The punctuality of your payment impacts 35% of your score and it is vital 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 maintain 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 actually is.

Even if you score a relatively high score, if your credit history is just 5 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 concerns raising your FICO score. All it takes is for you to lower your total 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 Victor, West Virginia you can call toll free 844-207-3818 in order to get started increasing your FICO score and fixing your credit report.

Category: General