FICO Score
Many people do not realize how credit history is calculated and how it can affect you.
FICO score is one of the tools lenders will use when you go to apply for a loan.
This is done in parallel with other credit metrics for almost any loan you could be looking for.
You might be asking yourself what is a this score is all about? I'm glad you asked let us get into that now.
FICO score is one of the versions of credit scores.
It was developed in the late 1950s by Fair Isaac & Co.
This metric was produced to tell lenders the viability in which people will be able to pay off their bills and any loans.
Currently the Federal Trade Commission has approved FICO scores as a satisfactory way to make a credit assessment of an individual.
So what does make up this score? The factors that affect your credit rating are broken up into five different categorizes.
These categories are types of credit that have been used, your payment history, length of your credit history, outstanding debt and new credit applications.
This allows lenders to look at your complete credit information when determining your ability to pay off a new loan.
You can tell how important it is to have a good credit rating.
Many people often confuse FICO with FICA score.
There is no FICA score and FICA is a different organization and not a credit agency.
Improving your FICO score can be done.
It will take some time to improve if you have done damage to it in the past.
First you will need to start making sure to make all of your payments on time.
When making your payments it is critical to make more than the minimum payment required.
It is also important to lower the balance on your credit cards.
After you lower your limits accumulating all of your credit card debt into one or two cards will boost your credit ratings.
Your FICO score is very important for your financial future.
Keep that in mind next time you look to get another credit card or an unnecessary loan.
FICO score is one of the tools lenders will use when you go to apply for a loan.
This is done in parallel with other credit metrics for almost any loan you could be looking for.
You might be asking yourself what is a this score is all about? I'm glad you asked let us get into that now.
FICO score is one of the versions of credit scores.
It was developed in the late 1950s by Fair Isaac & Co.
This metric was produced to tell lenders the viability in which people will be able to pay off their bills and any loans.
Currently the Federal Trade Commission has approved FICO scores as a satisfactory way to make a credit assessment of an individual.
So what does make up this score? The factors that affect your credit rating are broken up into five different categorizes.
These categories are types of credit that have been used, your payment history, length of your credit history, outstanding debt and new credit applications.
This allows lenders to look at your complete credit information when determining your ability to pay off a new loan.
You can tell how important it is to have a good credit rating.
Many people often confuse FICO with FICA score.
There is no FICA score and FICA is a different organization and not a credit agency.
Improving your FICO score can be done.
It will take some time to improve if you have done damage to it in the past.
First you will need to start making sure to make all of your payments on time.
When making your payments it is critical to make more than the minimum payment required.
It is also important to lower the balance on your credit cards.
After you lower your limits accumulating all of your credit card debt into one or two cards will boost your credit ratings.
Your FICO score is very important for your financial future.
Keep that in mind next time you look to get another credit card or an unnecessary loan.
Source...