Frequently Asked Fico Score Questions
Posted in Three Major Credit Reporting Agencies on 09/30/2010 01:19 am by
Archive for September, 2010
Whats a good FICO score in reguards to refinancing a home. What is the bottom of the good range?
Posted in Credit on 09/29/2010 08:25 pm by
larryandshaunafuller asked:
Also when do you get to excellent? Next, with a 640 FICO score, perfect payment history but not good D.T.I. what kind of rate can expect? Thanks everyone!
Also when do you get to excellent? Next, with a 640 FICO score, perfect payment history but not good D.T.I. what kind of rate can expect? Thanks everyone!
and yes Im working on the old score!
Ron
Get Your Free Fico Credit Score
Posted in Finance on 09/28/2010 02:23 pm by
Jack Harmon asked:
We all know about our free fico credit score, and yet many people around the world use it to take advantage of the credit they receive from banks and other financial institutions. We all like the fact that it is so easy to get free credit the first time around, grant you have been working permanently at a company for more than three months.
But then we go off on our little shopping sprees and buying basically enough merchandise to open up a store of our own, thus putting us in debt. This said it will be safe to say they we do not think of the consequences of maxing out our credit cards.
Many financial advisors say that you should be really careful when it comes to credit and credit cards, because we do not take into account that one day we will want to buy a home or buy a car, and if you have bad credit rating you will be turned down flat out.
A bad credit rating makes life really hard and a bad credit rating makes it really impossible for anyone to get credit from any company, including the tiny little clothing store on the street corner.
Free Fico Credit Score Explained
So if you are wondering how your credit score is determined you will have to do a bit more research, but basically it is a system called the Fico (Fair Isaac company) credit score system.
This system is used mainly buy banks and other financial institutions like credit card companies to determine your worthiness when it come to paying back the money they give you. The Fico system is also the biggest and most used system in the United States of America.
Many financial advisors and accountants’ plea to consumers to keep track of their free fico credit score at all times, as it is what will determine your future financial status.
The best way to do so is to get a free fico credit score. The free fico credit score can be got almost anywhere on the internet and it incorporates reports from all three of the credit bureaus, so you can stay on top of your entire score at all time.
Not many places offer free fico credit scores, but if you do find the better websites you will find a few places online offering free fico credit scores.
So do not delay, it might mean the end of your financial future, stay on top of your credit reports and get the free fico credit score.
Walter
We all know about our free fico credit score, and yet many people around the world use it to take advantage of the credit they receive from banks and other financial institutions. We all like the fact that it is so easy to get free credit the first time around, grant you have been working permanently at a company for more than three months.
But then we go off on our little shopping sprees and buying basically enough merchandise to open up a store of our own, thus putting us in debt. This said it will be safe to say they we do not think of the consequences of maxing out our credit cards.
Many financial advisors say that you should be really careful when it comes to credit and credit cards, because we do not take into account that one day we will want to buy a home or buy a car, and if you have bad credit rating you will be turned down flat out.
A bad credit rating makes life really hard and a bad credit rating makes it really impossible for anyone to get credit from any company, including the tiny little clothing store on the street corner.
Free Fico Credit Score Explained
So if you are wondering how your credit score is determined you will have to do a bit more research, but basically it is a system called the Fico (Fair Isaac company) credit score system.
This system is used mainly buy banks and other financial institutions like credit card companies to determine your worthiness when it come to paying back the money they give you. The Fico system is also the biggest and most used system in the United States of America.
Many financial advisors and accountants’ plea to consumers to keep track of their free fico credit score at all times, as it is what will determine your future financial status.
The best way to do so is to get a free fico credit score. The free fico credit score can be got almost anywhere on the internet and it incorporates reports from all three of the credit bureaus, so you can stay on top of your entire score at all time.
Not many places offer free fico credit scores, but if you do find the better websites you will find a few places online offering free fico credit scores.
So do not delay, it might mean the end of your financial future, stay on top of your credit reports and get the free fico credit score.
Walter
A Comparism Between FICO Scores and Credit Scores
Posted in Finance on 09/27/2010 05:31 am by
Tony Banks asked:
The term FICO score and credit score frequently interchanged by a lot of people. Given the existence of three main credit bureaus; Equifax, TransUnion and Experian a total of three scores exist, with only one being selected as the credit score.
FICO on the other hand stands for Fair Isaac Corporation. They introduced the scoring formula to the credit market with the aim to come up with a uniform way to measure data in credit reports by assigning a grade to the information.
Roughly 70% of all lending institutions including mortgage companies, banks and credit card companies rely on the Fair Issac Corporation version to qualify there applicants. Most mortgage lenders stick with this version when making decision on home approvals. But chances are that a lender that you approach for a loan is using your Fair Issac score to qualify you as opposed to your in-house credit score.
Each of the bureaus have business arrangement with Fair Issac Corporation to provide a version of the scoring model for their services thereby enabling them have individual, unique versions of your credit report.
For example, when you compare your score in the three credit bureaus, Equifax could be 640, TransUnion 675 and Experian 625. When you decide to pull your credit scores online make sure you are receiving your Fair Issac version and not any other, mainly due to the fact that this will be the one that best represents your credit worthiness in the marketplace. Just about all home lenders will use your FICO to grade the terms on your mortgage loan.
Brad
The term FICO score and credit score frequently interchanged by a lot of people. Given the existence of three main credit bureaus; Equifax, TransUnion and Experian a total of three scores exist, with only one being selected as the credit score.
FICO on the other hand stands for Fair Isaac Corporation. They introduced the scoring formula to the credit market with the aim to come up with a uniform way to measure data in credit reports by assigning a grade to the information.
Roughly 70% of all lending institutions including mortgage companies, banks and credit card companies rely on the Fair Issac Corporation version to qualify there applicants. Most mortgage lenders stick with this version when making decision on home approvals. But chances are that a lender that you approach for a loan is using your Fair Issac score to qualify you as opposed to your in-house credit score.
Each of the bureaus have business arrangement with Fair Issac Corporation to provide a version of the scoring model for their services thereby enabling them have individual, unique versions of your credit report.
For example, when you compare your score in the three credit bureaus, Equifax could be 640, TransUnion 675 and Experian 625. When you decide to pull your credit scores online make sure you are receiving your Fair Issac version and not any other, mainly due to the fact that this will be the one that best represents your credit worthiness in the marketplace. Just about all home lenders will use your FICO to grade the terms on your mortgage loan.
Brad
Credit Cards to Rebuild Credit – 5 Methods to Get that Card
Posted in Finance on 09/26/2010 03:30 pm by
Peter Burke asked:
Study reveals that nearly 9 million people in America have problems of bad credit. This forms about 3% of the population, (over 6% of the adult population!) of the United States. So the knowing the credit history of a person is gaining ground and necessity for creditors.
The fact remains if your FICO rate is below 620, people won’t lend you any credit. This FICO score being low has various reasons like bankruptcy, excessive debts, inability of rendering payment of bills at proper time, among others.
However, there is a ray of hope! Your credit score can be improved. This can be done by maintaining your potential for credit,however small it may be and making it clear to creditors that you’re capable of paying your debts in time, without having to having to resort to more credit. To help you improve your credit there 5 basic steps below.
1. Get yourself a copy of the your credit report. Then utilize the various advantages of the credit report of the government (which is free) from every Bureau of the National Consumer Credit – Equifax and Trans-Union. This will get you to the start of the process. It will give you a clear picture of your present rating.
2. File an application for a credit line, which may be a secured or unsecured credit card.
3. On getting the card, do not make blind purchases. Restrict the purchases to 70 percent of limit imposed on the credit card. i.e. if the limit of the credit card is $500, use it to the extent of $350 only.
4. Then, make sure you pay pay bills at the proper time, as this alone takes up 35% of the FICO score of yours. So this is a good base for creditors to judge your creditworthiness.
5. So what about Prepaid cards?
You can also use a credit card that is prepaid. This often a solution that many borrowers are unaware of. This, is perhaps the simplest and most effective method for longer term improvement if you have debt discipline problems. This effectively means you will mean using a credit card to rebuild credit – a ‘win-win’ situation. Use a prepaid credit card that is reported to a Credit Bureau. Only a few of the credit cards regularly report to a credit bureau. So select one that does so, on a regular basis.
One thing to note about prepaid cards is that you must Keep a track of fees. The prepaid card companies often levy fees. Make a prior comparison with many companies in order to secure a credit card where the lowest fee is charged. Bear in mind that some fees need to be paid for credit cards that get reported to the credit bureau, which can be up to an annual fee of$100 – But remember the purpose of this card is to repair credit!
Check the benefits
Some prepaid cards are available with certain benefits, but not all of them. Some give you points which can be used for free call time and other activities.
Preventing abuse of the credit card
Prepaid cards have the distinct benefit that you can never cross the limit, so it enables you to avoid interest and penalties. The implication is that if a report to the credit bureau is made, it is literally impossible to get a FICO score which is lower than your current score with such a card. So you can get credit cards to rebuild credit. It only gets better!
Curtis
Study reveals that nearly 9 million people in America have problems of bad credit. This forms about 3% of the population, (over 6% of the adult population!) of the United States. So the knowing the credit history of a person is gaining ground and necessity for creditors.
The fact remains if your FICO rate is below 620, people won’t lend you any credit. This FICO score being low has various reasons like bankruptcy, excessive debts, inability of rendering payment of bills at proper time, among others.
However, there is a ray of hope! Your credit score can be improved. This can be done by maintaining your potential for credit,however small it may be and making it clear to creditors that you’re capable of paying your debts in time, without having to having to resort to more credit. To help you improve your credit there 5 basic steps below.
1. Get yourself a copy of the your credit report. Then utilize the various advantages of the credit report of the government (which is free) from every Bureau of the National Consumer Credit – Equifax and Trans-Union. This will get you to the start of the process. It will give you a clear picture of your present rating.
2. File an application for a credit line, which may be a secured or unsecured credit card.
3. On getting the card, do not make blind purchases. Restrict the purchases to 70 percent of limit imposed on the credit card. i.e. if the limit of the credit card is $500, use it to the extent of $350 only.
4. Then, make sure you pay pay bills at the proper time, as this alone takes up 35% of the FICO score of yours. So this is a good base for creditors to judge your creditworthiness.
5. So what about Prepaid cards?
You can also use a credit card that is prepaid. This often a solution that many borrowers are unaware of. This, is perhaps the simplest and most effective method for longer term improvement if you have debt discipline problems. This effectively means you will mean using a credit card to rebuild credit – a ‘win-win’ situation. Use a prepaid credit card that is reported to a Credit Bureau. Only a few of the credit cards regularly report to a credit bureau. So select one that does so, on a regular basis.
One thing to note about prepaid cards is that you must Keep a track of fees. The prepaid card companies often levy fees. Make a prior comparison with many companies in order to secure a credit card where the lowest fee is charged. Bear in mind that some fees need to be paid for credit cards that get reported to the credit bureau, which can be up to an annual fee of$100 – But remember the purpose of this card is to repair credit!
Check the benefits
Some prepaid cards are available with certain benefits, but not all of them. Some give you points which can be used for free call time and other activities.
Preventing abuse of the credit card
Prepaid cards have the distinct benefit that you can never cross the limit, so it enables you to avoid interest and penalties. The implication is that if a report to the credit bureau is made, it is literally impossible to get a FICO score which is lower than your current score with such a card. So you can get credit cards to rebuild credit. It only gets better!
Curtis
What service do mortgage lenders use to get consumer FICO scores from?
Posted in Financial Health on 09/24/2010 01:26 am by
rlc_60504 asked:
…and how do I get the same? I’ve gotten my credit score from some online sources before, but then I talk to a bank and they have a completely different number for me when they tell me my FICO score. I’d like to see the same report as the mortgage companies so we are on the same page.
Gladys
…and how do I get the same? I’ve gotten my credit score from some online sources before, but then I talk to a bank and they have a completely different number for me when they tell me my FICO score. I’d like to see the same report as the mortgage companies so we are on the same page.
Gladys
What is the FICO score regarding to credit and how do u get it?
Posted in Credit on 09/21/2010 01:54 pm by
kilgore87 asked:
Is it true that’s ur FICO score is what they look at regarding getting a house? How is the score add up of what is it added up from. I’m looking into buying a house and and I was informed me that I needed a credit score of 620. I have a 590, 573 and 601.
Annette
Is it true that’s ur FICO score is what they look at regarding getting a house? How is the score add up of what is it added up from. I’m looking into buying a house and and I was informed me that I needed a credit score of 620. I have a 590, 573 and 601.
Annette
Demystifying The Fico Score Breakdown Ant Its Relationship With Your Credit Report-Part 1
Posted in Mistake on 09/20/2010 07:14 am by
What is the fastest way to raise my FICO Score?
Posted in Proportion on 09/19/2010 11:19 am by
JoeJ asked:
I had to file bankruptcy about 4 years ago, and now I see that my FICO score is still low. I am looking into buying a house and need the lowest interest rates.
Mark
I had to file bankruptcy about 4 years ago, and now I see that my FICO score is still low. I am looking into buying a house and need the lowest interest rates.
Mark