In North Fork The FICO Score is Important
Here are the Best Ways to Improve Your Credit Report FICO Score
In North Fork, Nevada some of the best common discussions between friends is connected to credit scoring. The main reason for this is the score achieved by any individual would substantially impact the amount of mortgage, car loans and many other financial related services.
To put it simply, a credit rating is similar to a report card from North Fork High School (I know, we have all been through that) where you would get a reprimand for something low and a reward for a good performance.
Contrary to what many individuals in North Fork believe, there is not a single, universal way of categorizing credit rating where the last time you took an extra nickel from the cashier would be recorded on your credit history.
There is though, a widely used popular credit score in the United States, 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 banking and mortgage companies in North Fork.
Before getting involved with the discussion on how FICO rating might be boosted, it important 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 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 search for credit and/or amount of credit obtained recently.
The initial step to improving a FICO rating is to get a copy of your own credit report. This can be attained from Equifax, TransUnion or Experian.
Then, brace yourself for the misery (or joy if you’re an accounting professional) of going through all the numbers and being sure everything adds up to the best of your recollection.
The reason is because if something is incorrect in your credit history, it’s best to get it corrected immediately because it can take up to months to get a proper correction.
Furthermore, if you have serious Credit card debt where a lot of your Credit Card balances are at the credit line, 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 high balance credit card debt would definitely increase the FICO score as it impacts 30% of the FICO score.
Next, it is equally important for you to pay off your debt on time. 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 every month.
The punctuality of your payment impacts 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 time 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 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 receive a larger loan or a lower interest rate.
In conclusion, it’s a not nuclear physics when it comes to raising your FICO score. All it takes is for you to lower your credit card debt, pay your bills on time 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 North Fork, Nevada you can call toll free 844-207-3818 in order to get started increasing your FICO score and fixing your credit report.