Credit Report News, Tips & Advice
Website CertifiedPrivacy Protected
Credit Report News, Tips & Advice « Credit Reports > Credit Report Advice > How a FICO Score will Make or Break the Potential Borrower in You

How a FICO Score will Make or Break the Potential Borrower in You

By Andy Snyder
Published: Wednesday, November 4th, 2009

Being aware of your FICO score is like holding a beam of light in a dark tunnel. You have seen your credit score, and if you’re not happy about it, learning about how FICO scoring system uses score cards and how it affects your loan is the sure way to go. This is one good credit report advice that will never go out of hand. But how do they get these scores? What are the ways to increase your score? Read on to learn more.

Scorecards are based on you financial data. In other words, it is your history as a borrower and payer. Have you been a good client? Have you met deadlines?  Were there times that you were delayed for 30 days or more in the payment of one of your loans? Does your credit card always reaches its limit most of the time? Have you ever been bankrupt? Well, here are just some of the bases in getting your scorecard. By this time, it’s likely that you already have an idea of your scorecard and of what might be the content of your credit report advice.

The FICO scoring system will be based on the number of your bank accounts, your outstanding debts and your credit limit. After gathering all these information they will use a certain formula that will give you a 3-digit score. It can be as low as 250 to as high as 800. Of course, credit report advice says, what we aim for is a higher score.

A sample FICO calculation goes this way: 30% is given to you payment history (are your payments on time or is it always late), 10% to the status of your new accounts (are there new loans, bank accounts etc), 20% to your credit card status (how long have you been using it) and another 10% to the category of your credit card. Yes, all the things that you used to think were just trivial, matters to FICO and will to your credit report advice.

Increasing you credit score is not mainly for approval of loans. This might have a big impact in your life knowing what a bigger loan with low interests can get you. Being no.1 in score cards category will give you the advantage of fast loans. Credit bureaus will be more than happy to give you one instead of you endlessly in search of a good credit repair company who will fix your credit history, only to find out that their promise to erase your bad credit history is hoax.

Now that you are already aware of the FICO scoring system and its scorecards, it is up to your discretion whether to use it to your advantage or rely forever in credit repair companies. One time or another, you will need the services of a credit bureau, that’s for sure. So as early as now, try reviewing you own “scorecard”nts etc), 20% to your credit card status( how long have and see whether you pass or not. In the end, a credit report advice will always remind you that paying your bills on time will go a long, long way.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.