Credit Report Secret – Raise Your Credit Score Fast With This Method!
Posted in Implication on 09/24/2009 02:28 am by
Archive for September, 2009
How to Read Fico Score and Increase Credit Rating
Posted in what is a good fico score 2 on 09/20/2009 07:24 pm by
The Five Factors Affecting Your FICO Score
Posted in Finance on 09/20/2009 04:34 am by
Elliot Spalding asked:
Most of us are familiar with credit scores, but are not really sure how the score is generated. The first thing to understand is there 1000 different ways to score your credit. They are all based on your credit report and the most recognized is the FICO score. Developed by Fair Isaac, FICO scores entail a highly complex formula to determine a credit score with each factor’s value dependent on other pieces of information. There are five main factors that weigh into your FICO score to know.
Payment History – This makes up 35% of your FICO score. This is the largest portion of the score and is due to the direct relationship of defaulting on loans and not paying bills on time. Your FICO score looks at the negative events and judges based on the recentness of late payments, the frequency of late payments, and the severity of late payments. Severity meaning how late were you in paying your bills, 30 day, 90 days and so on. How much you owe makes up to 30% of your FICO score. Utilization is the term used and it the sum of all your outstanding debt divided by your credit limits. Your FICO score sees this as the lower the better since the higher default risk on those who are close to their credit limits How long you have had credit equates to 15% of your FICO score. Lenders like a longer history of accounts. There are two major factors here are the oldest account’s age and the average age of all your accounts. Applications for credit make up 10% of your FICO score. This factor looks at how long has it been since you last applied for a new credit account. A negative factor here could be if you apply for several accounts in a short period of time. It is a factor based on the viewing times of your credit report by lenders. The credit mix you use makes up the last 10% of your FICO score. They want to see a “healthy mix” of credit. There is no rules to what a healthy credit mix really is, but certain types of debt are seen as better than others.
Putting this all together generates your FICO score. An important note is your FICO score will put more emphasis on recent events compared to the past. You can easily lose points on your FICO score and it is not easy to gain them back. That is why understanding and knowing your FICO score is so important.
Antonio
Most of us are familiar with credit scores, but are not really sure how the score is generated. The first thing to understand is there 1000 different ways to score your credit. They are all based on your credit report and the most recognized is the FICO score. Developed by Fair Isaac, FICO scores entail a highly complex formula to determine a credit score with each factor’s value dependent on other pieces of information. There are five main factors that weigh into your FICO score to know.
Payment History – This makes up 35% of your FICO score. This is the largest portion of the score and is due to the direct relationship of defaulting on loans and not paying bills on time. Your FICO score looks at the negative events and judges based on the recentness of late payments, the frequency of late payments, and the severity of late payments. Severity meaning how late were you in paying your bills, 30 day, 90 days and so on. How much you owe makes up to 30% of your FICO score. Utilization is the term used and it the sum of all your outstanding debt divided by your credit limits. Your FICO score sees this as the lower the better since the higher default risk on those who are close to their credit limits How long you have had credit equates to 15% of your FICO score. Lenders like a longer history of accounts. There are two major factors here are the oldest account’s age and the average age of all your accounts. Applications for credit make up 10% of your FICO score. This factor looks at how long has it been since you last applied for a new credit account. A negative factor here could be if you apply for several accounts in a short period of time. It is a factor based on the viewing times of your credit report by lenders. The credit mix you use makes up the last 10% of your FICO score. They want to see a “healthy mix” of credit. There is no rules to what a healthy credit mix really is, but certain types of debt are seen as better than others.
Putting this all together generates your FICO score. An important note is your FICO score will put more emphasis on recent events compared to the past. You can easily lose points on your FICO score and it is not easy to gain them back. That is why understanding and knowing your FICO score is so important.
Antonio
Good FICO Score – Lowering Limits
Posted in Finance on 09/06/2009 12:30 am by
Kyle Gentile asked:
Often consumers can get a bit confused about the right way and the wrong to improve a FICO score The idea of lowering your limits is just one of those ideas. The idea comes from the rational that lower credit limits means you are a less of a risk to a lender because you can get yourself into trouble borrowing large amounts of credit at any given time. Since you are less likely to get yourself into trouble, the better FICO sore should be. This is wrong way and an incorrect way to think about improving a FICO score
The first reason why this will hurt your chances of getting a good FICO score is the based on the FICO formula itself. 30% of your FICO score is the measurement of how much you owe and more specifically is your utilization. This is found by taking the credit balance and dividing it by the credit limit. The lower the better is the rule and this is what will actually help you get a good FICO score A lowing a credit limit means you will be dividing how much you owe by a lower number creating a high percentage. If you ask for your credit limits to be lower it has the effect of raising your utilization and damaging your FICO score
The second reason why lowering credit limits might not be a good idea is the fact your FICO score uses your credit history. Meaning it you have done no real method to improve your overall credit standing. You have lower your limits but you have done nothing to the things that really matter such as paying on time and paying off your balances.
Lowering limits should never be advised when trying to achieve a good FICO score Consumers are better off focusing on paying on time and reducing their spending. What a lower limit can do for you is control your spending. If a consumer is struggling to budget and plan a lower limit my make them think twice before buying an unneeded item. Lowering limits could be method from saving you from your spending habits, but is not a method of improving a FICO score.
Phyllis
Often consumers can get a bit confused about the right way and the wrong to improve a FICO score The idea of lowering your limits is just one of those ideas. The idea comes from the rational that lower credit limits means you are a less of a risk to a lender because you can get yourself into trouble borrowing large amounts of credit at any given time. Since you are less likely to get yourself into trouble, the better FICO sore should be. This is wrong way and an incorrect way to think about improving a FICO score
The first reason why this will hurt your chances of getting a good FICO score is the based on the FICO formula itself. 30% of your FICO score is the measurement of how much you owe and more specifically is your utilization. This is found by taking the credit balance and dividing it by the credit limit. The lower the better is the rule and this is what will actually help you get a good FICO score A lowing a credit limit means you will be dividing how much you owe by a lower number creating a high percentage. If you ask for your credit limits to be lower it has the effect of raising your utilization and damaging your FICO score
The second reason why lowering credit limits might not be a good idea is the fact your FICO score uses your credit history. Meaning it you have done no real method to improve your overall credit standing. You have lower your limits but you have done nothing to the things that really matter such as paying on time and paying off your balances.
Lowering limits should never be advised when trying to achieve a good FICO score Consumers are better off focusing on paying on time and reducing their spending. What a lower limit can do for you is control your spending. If a consumer is struggling to budget and plan a lower limit my make them think twice before buying an unneeded item. Lowering limits could be method from saving you from your spending habits, but is not a method of improving a FICO score.
Phyllis
Legal Fico Score Credit Repair
Posted in Howto on 09/04/2009 01:24 am byimperiallev asked:
www.imperialcreditrepair.com Legal Fico Score Credit Repair – In this video I share with you what the credit bureaus & banks don’t want you to know. Legal Fico Score Credit Repair. The banks are legally bilking innocent people such as yourself. Don’t let them get away with it. Legal…
Stephanie
Your FICO score and improving your credit – www.unsecuredlines.Org
Posted in Education on 09/04/2009 01:24 am byThePremierMedia asked:
The speaker describes the basics of how to protect and improve your Credit History and FICO Score. Visit www.unsecuredlines.Org for more info.
Phillip