The Use of FICO Scores in Woodson, Illinois

In Woodson The FICO Score is Important

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

In Woodson, Illinois among the best typical discussions with people could be connected to credit history. The main reason behind this is the score achieved by any individual would significantly influence the amount of home mortgage, car loans and many other financial related costs.

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

Unlike what lots of people in Woodson believe, there is not one universal way of ranking credit history 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 well known credit score in the USA, 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 Woodson banking and in the credit industry in Woodson.

Before engaging in the discussion on how FICO rating may be boosted, it handy to have an outline on what your FICO rating is based on.

, 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% – varieties 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 credit report. This can be attained from Equifax, TransUnion or Experian.

After that, brace yourself for the agony (or delight if you are a bookkeeper) of examining all the numbers and ensuring everything adds up to the best of your knowledge.

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

If you have serious Charge Card debt where almost all of your 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 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 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 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 is.

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

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

There are professionals 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 Woodson, Illinois you can call toll free 844-207-3818 in order to get started increasing your FICO score and fixing your credit report.

Category: General