What it means to have a Good Credit Score and how to take control of it.
A good credit score is a relative term and is different for what you are applying for: Job, Mortgage, Insurance, Credit Card, Insurance (Car, Home, Auto, Life)
However, the results are all the same: The Higher the Credit Score the more liekleyyou will to land the Job and get a Lower Interest Rate or Insurance Premium. Here is how we will will get your credit score and also how to Monitor and INCREASE it.
How Does Credit Scores Work
When I talk about Credit Score I am referring to your FICO score. There are many other Credit Scoring systems out there, but FICO is the Score that is used most commonly by Lenders and Insurance Companies.
Excellent Credit Score
Breaking down how your Credit Score is determined is very much a Secret, but there are specific areas that FICO relies on:
- Payment History: Do you pay on time or are you late (35% of Score)
- Amount Owed: How much do you owe on your account versus your credit limit or original balance. (30%)
- Length of Credit History: There are various factors in this area: When you originally opened up your first account to when you last applied for credit (15%)
- New Credit: Newly opened credit as well as applications. (10%)
- Credit Mix: Lenders are looking for a MIX of credit such as Mortgage, Auto Loan, Credit Cards). (10%)
FICO Scores Range from 300-850 and the HIGHER the Credit Score the Better: On average most consumers have credit scores in the range of 500-800.
What a GOOD CREDIT SCORE can do:
With a good Credit score you may be able to qualify for a mortgage loan. However the higher your Credit Score the Lower your Interest Rate will be: Here is a Chart I obtained from MyFico.com for comparison purposes:
As you can see the difference in a Credit Score of 639 to 760 could mean a Savings of over $68,000 in INTEREST:
The same applies to Auto loans, Credit Cards, Insurance and so many other areas in your life.
How to Increase your Credit Score:
- Pay your bills on time
- Keep your balance as Low as Possible
- Don’t open up new credit too often and don’t CLOSE accounts. The older your creditors the Better
- Use a variety of different credit sources
How to get your Credit Score that the Lenders use:
MyFico is the #1 Choice in this area: MyFico will give you the Credit Score that you Mortgage Company, your Insurance Company, your Credit Card Company and Your Auto Lender will use to make the decision on If you will be Approved and at what Interest Rate. MyFICO is the consumer division of Fair Isaac, the company that invented the FICO® credit risk score that lenders use. Starting in the 1960s, Fair Isaac sparked a revolution by pioneering credit risk scoring for the financial services industry. You can also Monitor your Credit and get counseling to help get inaccurate information off of your credit, since 1 in 5 consumers have information on their report that shouldn’t be there.
I established www.CreditScoresandMore.com to give you a 4 STEP approach to :
- Get a Free Credit Score
- Get your FICO Score
- Seek Credit Repair Assistance with a AAA Rated Company
- Seek Legal Counsel from one the Countries Premier Credit Repair Law Firms
Why use Credit Scores and More
With over 30 Years in the Lending field, I have been able to help THOUSANDS of people and now I have developed this process to not only provide you with the information you need but the TOOL and a PROCESS to do something about it.
