The Use of FICO Scores in Giatto, West Virginia

In Giatto The FICO Score is Important

Here are the Best Ways to Improve Your Credit Report FICO Score 

In Giatto, West Virginia among probably the most common discussions between friends could be connected to credit history. The reason behind this is due to the fact that the score achieved by any individual would greatly affect the amount of mortgage, car loans and many other financial costs.

Simply put, a credit history compares to a report card from Giatto High School (I know, we have all been through that) where you would get a punishment for a low grade and a reward for a good grade.

In contrast to what lots of folks in Giatto believe, there is not one universal way of classifying credit rating where the last time you took an extra 5 cents from the cashier would be recorded on your credit report.

There is however, a widely used popular credit score in the United States, commonly 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 embraced tool by most banking and in the credit industry in Giatto.

Before engaging in the discussion on how FICO rating could be improved, it is worthy to have an idea on what FICO rating is based upon.

Simply speaking, FICO rating is separated into a few statistical components where these components are made up from:

  • 35% – punctuality of payment historically
  • 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% – types of credit used (installment, revolving or consumer finance).
  • 10% – recent search for credit and/or amount of credit obtained recently.

The very first step to improving a FICO rating is to get a copy of your credit report. This can be attained from Equifax, TransUnion or Experian.

Next, brace yourself for the distress (or delight if you’re an accountant) of examining all the numbers and ensuring everything adds up to the best of your recollection.

The reason is due to the fact that if something is incorrect in the report, it’s best to get it corrected because it can take up to months in order to get a update entered.

Furthermore, if you have serious Credit card debt where most of your card balances are near the credit limit, it’s best if you pay them off asap. If you need help paying off debt, contact Operation Care for financial coaching. Call them at 844-207-3818.

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.

Then, it is equally important for you to pay off your debt promptly. Even if you are able to pay off your debt, it would not have the impact you want on your FICO score if you do not pay your debt on schedule and each time.

The punctuality of your payment takes up 35% of your score and it is vital to know that paying your debt on time NOW is outweighed by the fact that you paid your debt on schedule 3 years ago.

It is always important to keep your longest standing account. Because 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.

For instance, even if you score a relatively high score, if you credit history is just five years as compared with an average rating with a credit history of 30 years, the person with the longer credit history would possibly qualify for a larger loan or a lower annual interest rate.

In conclusion, it’s a not nuclear physics when it pertains to raising your FICO score. All it takes is for you to lower your total debt, pay your bills in a timely manner and monitor where you are heading in your spending, mortgage and loans. 

The specialists at Cambridge 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 Giatto, West Virginia you can call toll free 844-207-3818 to get started increasing your credit history and fixing your credit report.