fico score http://www.artwoo.com Returned search results for fico score Copyright 2008 Mon, 01 Dec 2008 09:11:48 +0000 http://www.artwoo.com/rss/fico+score What is a Good FICO Score and How to Get One http://www.artwoo.com/article/what-is-a-good-fico-score-and-how-to-get-one http://www.artwoo.com/article/what-is-a-good-fico-score-and-how-to-get-one#comments Sat, 23 Aug 2008 04:08:38 +0000 what is a good fico scoregood fico scoremortgage lenderspaying on timedefault ratepayment historyextra money http://www.artwoo.com/article/what-is-a-good-fico-score-and-how-to-get-one what is a ? The reason why so many people are asking what is a good FICO score is the use of the FICO score when applying for a mortgage. Lenders use your FICO as a way to determine risk. It helps determine the monthly payment and the interest the lender will give you on a loan. That is the reason why a good FICO score is so important. It could save you thousands.

A good FICO score is usually classed as being above 700. At 700, you will have a score better than the majority of U.S. consumers. To be considered excellent, you will have to have a FICO above 750. The above 700 has a low and lenders usually seek borrows around this level.



To get a good FICO score, you should know how it works. Your FICO score is based on your credit report and the FICO formula weighs several different factors. The two largest portions of your FICO score are your and how much you owe. These together make up 65% of your FICO score and if you can concentrate your efforts these are the two to pick



Your payment history is 35% of your FICO score and is a measure of your ability to pay on time. There is a direct relation between and default making it the most important. It might be simple to say pay your bills on time, but people struggle at it. The use of a budget is a must. You need to account each month for your money and how it is being spent. A budget allows you to set aside money to pay your bills and if you follow it you will pay on time.

How much you owe makes of 30% of your FICO score. If you are near limit the percentage of default increases. To improve here, you need to pay down what you owe. It then comes back to a budget. You need to commit yourself to finding each month to pay down the balances. Furthermore, you need to leave the credit the credit cards at home or do something so you are not spending on the cards. This is a struggle but until this stops finding extra money will get you no where. You need to try to reach a level under 10% owed when compared to your credit limits.

These are two simple methods of how to get a good FICO score, but often not practiced. This could be one of the largest money savers in your life time. Even one interest point could equate to thousands of dollars. An important note is lenders can use different formulas when making lending decisions. Meaning that a 700 score might not get as good of an interest rate as a person with a 720. The lesson is to try to have the highest FICO score possible. You need to be excellent if possible.To find out more about, what is a FICO credit score, visit Kyle's blog FICO authority.com. There you can find all the information you are looking for about what a good FICO score is.]]> All About Your FICO Score http://www.artwoo.com/article/all-about-your-fico-score http://www.artwoo.com/article/all-about-your-fico-score#comments Fri, 28 Jul 2006 12:27:14 +0000 fico credit scorefico scorefico scoresfair isaac corporationhttpcreditorsinterest rate http://www.artwoo.com/article/all-about-your-fico-score FICO score is what counts. If you're new to the credit or home buying game, FICO is probably a very mysterious and confusing word. You probably already know it has something to do with credit; but do you know exactly what your FICO score is and means? If not, read on.

To put it bluntly, your FICO score is a number that determines the you'll get on a loan. You can find it at http://www.FICO.com. It is a predictive measure used by lenders to rate the probability that you will default on a loan. The higher your FICO score, the lower your interest rate. There it is; the boiled-down, straight-to-the-point definition of a FICO Score. But, as you probably guessed, there is much more to know about a FICO score and what affects it. For starters, FICO is actually short for . Founded in 1956, the Fair Isaac Corporation is the financial institution that developed the . This credit rating is used to measure your credit risk. can be obtained through most major consumer reporting agencies in the U.S. Whenever you make a purchase that involves your credit (such as a car, home, boat, etc.), obtain your FICO score; however, your score is not released to you. You can find out your FICO score on your own, but the creditors you partner with to finance personal belongs don't have to provide you with the financial information they find out about you. However, if you're turned down for financing, creditors and lenders are required to provide you with a reason why you were turned down and, if your credit score was a factor, your credit score. They are also required to specify which credit agency they used to establish your credit score.

How to Calculate a FICO Score Your FICO score is calculated based on your payment history, your outstanding balances, length of credit history, any new credit you have, they types of credit you've used, and your credit report. http://www.Bills.com has tools to evaluate how a score is calculated, but in short, it's nearly impossible for you to calculate your own FICO score. Each area of your credit is weighed and used differently in calculating your credit score. However, each area is vital to getting a high FICO score, so you need to be mindful of paying your monthly bills on time and managing your existing credit. Even a few late payments can negatively affect your score.

How to Identify a Good FICO Score Your FICO score is based on a scale of 300 to 850. To determine your risk factor, creditors take your FICO score and compare it to a FICO score chart. If you have a score less than 620, you're considered "Risky". If you have a score between 620 and 660, you're labeled as "Uncertain". A FICO score between 660 and 720 means you have an acceptable credit rating. Anything over 720 means you have "Perfect" credit.

How to Obtain Your Credit Score If you want to check out your FICO credit score, the Fair Credit Reporting Act requires the 3 major reporting agencies (Equifax, Experian and TransUnion) to provide you with a complimentary copy of your credit report once every 12 months, but only if you request it (it will not be automatically sent to you every 12 months). However, each agency will most likely have a different score for you depending on the particular credit information provided to that particular agency. So, if you want a better idea of what your credit score actually is, request your credit score from all three agencies and figure out the average.

Your FICO score says a lot about you. It's used by creditors to establish your credit ranking and determine your interest rate on loans and financing. The higher your FICO score, the lower your interest rate will be. So stay on top of your monthly credit card, mortgage, and even cable bills, and pay everything on time. If not, your credit could plummet. Brad Stroh is currently co-CEO of Freedom Financial Network and http://www.Bills.com. If you would like more of Brad's http://www.Bills.com/sitemap/, please visit the Bills.com information on http://www.Bills.com/debthelp/. ]]> Is A 640 Fico Credit Score High Enough To Get A Low California Home Loan Mortgage Rate? http://www.artwoo.com/article/is-a-640-fico-credit-score-high-enough-to-get-a-low-california-home-loan-mortgage-rate http://www.artwoo.com/article/is-a-640-fico-credit-score-high-enough-to-get-a-low-california-home-loan-mortgage-rate#comments Fri, 29 Sep 2006 18:27:07 +0000 http://www.artwoo.com/article/is-a-640-fico-credit-score-high-enough-to-get-a-low-california-home-loan-mortgage-rate "Over 30 million people in the U.S.A. have FICO credit scores low enough, that's less than 640, to make shopping for low mortgage loan rates very difficult at best," states George Lincoln, Vice President of FreeFinancialConsulting.com

FreeFinancialConsulting.com provides free financial consulting to the public in all areas of personal money matters including home mortgage loans and credit repair.

"The major credit reporting agencies use a slightly different system to arrive at a credit score. The best known is called the FICO credit score, developed by Fair Isaac and Company (FICO)."

"A FICO credit score can range from 300 to 800, but most borrowers fall into the 600-800 FICO credit score range," continues Lincoln.

"A high FICO credit score is your reward for paying bills on time. This is one of the most important factors that determine your California home mortgage loan rate."

If you've had a few credit "bumps in the road" recently, and you're asking yourself, "How can I improve my FICO credit score"? Here are 5 ways to boost your FICO credit score:

1. Paying your bills on time is the first step in improving your FICO credit score. Late payments can have a big negative impact on your FICO credit score. 30 days or more late on one account can lower your FICO credit score 50 points or more. If you don't like writing checks, go online and automate your bill paying.

2. Don't max out your credit cards. The smaller balance gives you a wider difference between your balance and your credit limit. Also, if you are planning to purchase a new car or other major item, wait until you get that low mortgage loan rate.

3. If you are sincerely interested in improving your FICO credit score, bankruptcy MUST be avoided! Bankruptcy is more negative than late payments or collection accounts.

4. Get credit counseling if you have too much debt and begin to fall behind, or can't see a way out.

5. Keep old paid off accounts in an open status. If you close an account, it won't help your FICO credit score but it could lower your FICO credit score.

"If you close an old account it could make you look like a "rookie" in the credit world. A factor in obtaining credit is how long you've had credit."



"If your FICO credit scores are over 640, but you want to raise it, obtain a copy of your credit report and request that the credit bureau remove any errors," concludes Lincoln. FreeFinancialConsulting.com provides free financial consulting on personal money matters including home mortgage loans and credit repair. For more information improving credit score please call 866 398 4664 or go to http://www.FreeFinancialConsulting.com ]]> What Is A Good FICO Score? http://www.artwoo.com/article/what-is-a-good-fico-score http://www.artwoo.com/article/what-is-a-good-fico-score#comments Fri, 07 Mar 2008 12:35:00 +0000 what is a good fico scoreconforming loan amountgood fico scoreretirement fundsloan guidelinesmortgage programsstart at the bottom http://www.artwoo.com/article/what-is-a-good-fico-score good FICO score doesn't't guarantee you the best rates on a mortgage or even a car. Most of the clients that ask me this question do indeed have good credit and they know it. By asking me "" they are subliminally telling me "hey buddy I get the best rates so don't get tricky".

For the most part these customers are right; a good FICO score does usually mean the best rate. However, putting a loan together we have to look at all pieces of the pie. I have quoted borrowers with impeccable credit rates that made them want to slap me. A good FICO score opens the gate for programs that people with lower credit scores cant even consider. However other pieces of the pie can definitely bump your rate upwards.

For instance, what if you have a good FICO score but cannot prove that you have enough income to afford the loan? What if your home is over the and considered a Jumbo loan? What if you are on a fixed income and living off of your ? If your home is at a high loan to value that can get you too. The bottom line, I can help a person with excellent credit into a loan like this but their rate will be 1.5% - 2% over the average rate you see posted online.

Some and car loans have a minimum credit score and once you reach that plateau all the rates are the same. Meaning, if I have a 640 credit score and you have a 720 credit score and we both apply for the same mortgage my rate will be the same as yours under conforming guidelines. Some car work the same way. The difference between the two score is you may qualify to buy the car or house without a down payment where I may have to put 5% down.

So what is a good FICO score already? Lets and work our way up. Credit scores run from 450 - 850 on the FICO scale. After ten years of pulling credit I have never seen either score, I have seen close though. If your credit score that begins with a "4" are probably not going to be offered credit, there are exceptions but by in large I am right. Generally 500 - 599 is considered to be poor credit, D paper, sub-prime paper, these borrowers may get the loan but they will pay dearly for it.

FICO scores between 600 - 660 are typically graded as "c paper" up to "b paper". These borrowers can expect to pay a higher price on credit cards, car loans but not necessarily when it comes to mortgages. When your FICO score reaches 680 - 720 you can usually expect to get the same rates as the person with the best FICO score. The only difference is that you will not have access to all of the programs that are available to the borrower with the higher FICO score.

If you have a credit score from 721 - 850 you will qualify for the best rates, all of the programs and probably get your boodie smooched by whoever is extending the credit. The misconception that most borrowers make is the assumption that a borrower with an 820 FICO will get preferential treatment over the borrower with a 721 score. I am afraid not, once you pass 720 your in the club, you can expect the same treatment that a person with very highest score receives you may receive a little more "boodie smooching" but that's it. Aubrey Clark is an author and syndicated author http://Lendfast.com who writes extensively on Financial matters. His tutorials cover subjects like What is a good fico score, profit first negotiating to how to win when banks compete. ]]> Bad Credit Mortgage Loans - How Does Your Fico Credit Score Affect Your Loan Approval? http://www.artwoo.com/article/bad-credit-mortgage-loans-how-does-your-fico-credit-score-affect-your-loan-approval http://www.artwoo.com/article/bad-credit-mortgage-loans-how-does-your-fico-credit-score-affect-your-loan-approval#comments Sun, 09 Sep 2007 15:15:05 +0000 fico credit scorefico scoresub prime mortgageprime interest ratehome mortgage loannew mortgagehome loan financing http://www.artwoo.com/article/bad-credit-mortgage-loans-how-does-your-fico-credit-score-affect-your-loan-approval FICO credit score, that will give you a good idea. Here is a general idea of the breakdown:

500 =96 580 - Poor Credit - You should be able to get a if you are willing to make a down payment, probably somewhere between 5-20%. You will probably need a sub-prime mortgage loan with a slightly higher interest rate.

580 - 620 - Fair Credit - You're right on the edge. You may be able to get 100% financing or you may need a small down payment to make the loan work. Depending on how much money you put down, you may be able to get .

620 - 640 Average Credit -You should get a 100% . You should not need to have a down payment. You should be able to get a low interest rate.

640 - 700 Good Credit - You should be able to be approved for a 100 - 125% home mortgage loan. You should be able to get a great interest rate.

700+ Excellent Credit - You're in the drivers seat! You should be able to get an excellent rate with excellent terms. Of course, all of these factors vary with each borrower depending on the size of loan you want and on your income and other factors.

What is the FICO Score Based On? Most of the FICO score is dependent on amounts owed and payment history. So, the fastest and best way to increase your credit score will be to make payments on time and keep old accounts open.

What Should I Avoid To Keep My Score High? If you are in the process of getting a loan, avoid applying for or opening any new credit accounts. This can drop your credit score very quickly and make it that much harder to get approved. http://mortgagesanity.com/2007/02/08/bad-credit-mortgage-companies/ ]]> Bad Credit Mortgage Loans - How Does Your Fico Credit Score Affect Your Loan Approval? http://www.artwoo.com/article/bad-credit-mortgage-loans-how-does-your-fico-credit-score-affect-your-loan-approval http://www.artwoo.com/article/bad-credit-mortgage-loans-how-does-your-fico-credit-score-affect-your-loan-approval#comments Wed, 07 Mar 2007 22:27:07 +0000 fico credit scorefico scoreprime interest ratehome mortgage loanprime mortgagenew mortgagehome loan financing http://www.artwoo.com/article/bad-credit-mortgage-loans-how-does-your-fico-credit-score-affect-your-loan-approval FICO credit score, that will give you a good idea. Here is a general idea of the breakdown:

500 -- 580 - Poor Credit - You should be able to get a if you are willing to make a down payment, probably somewhere between 5-20%. You will probably need a sub- loan with a slightly higher interest rate.

580 - 620 - Fair Credit - You're right on the edge. You may be able to get 100% financing or you may need a small down payment to make the loan work. Depending on how much money you put down, you may be able to get .

620 - 640 Average Credit -You should get a 100% . You should not need to have a down payment. You should be able to get a low interest rate.

640 - 700 Good Credit - You should be able to be approved for a 100 - 125% home mortgage loan. You should be able to get a great interest rate.

700+ Excellent Credit - You're in the drivers seat! You should be able to get an excellent rate with excellent terms. Of course, all of these factors vary with each borrower depending on the size of loan you want and on your income and other factors.

What is the FICO Score Based On? Most of the FICO score is dependent on amounts owed and payment history. So, the fastest and best way to increase your credit score will be to make payments on time and keep old accounts open.

What Should I Avoid To Keep My Score High? If you are in the process of getting a loan, avoid applying for or opening any new credit accounts. This can drop your credit score very quickly and make it that much harder to get approved. http://mortgagesanity.com/2007/02/08/bad-credit-mortgage-companies/ ]]> Mortgage Rate-Credit Score-Watch What You Pay For http://www.artwoo.com/article/mortgage-rate-credit-score-watch-what-you-pay-for http://www.artwoo.com/article/mortgage-rate-credit-score-watch-what-you-pay-for#comments Wed, 22 Aug 2007 15:35:00 +0000 fico scorecredit scorefico scoresgetting a mortgagecredit bureausconsumer perspectivemortgage issues http://www.artwoo.com/article/mortgage-rate-credit-score-watch-what-you-pay-for credit scores are the same. When you pay to get a rating number it may not be the same one your lender sees.

What are the implications of this? Well for starters it could mean the difference between or not, getting any kind of loan or not, getting a good versus bad rate on a car loan, the list goes on and on. The implications are huge!

Where does the difference come from? If you go looking for a credit score you will find many sources from themselves to credit card companies. Some of these are free but most are not. These serve as additional profit centers for the providers. They all have their own take on what makes up your credit score and may or may not be close to what the real deal is.

What is the real deal? The real deal is the . Fair Isaac and Company has been THE source of credit scores for lenders for decades and will probably remain so. The other score for the purposes intended are worthless. Checking your real and credit reports is the best way to get an accurate picture of how lenders see you.

What's the Problem? It's all about the money. From the credit bureaus perspective, credit bureaus got tired of sharing fees w FICO so they came up with their own score and decided to market them. From a , it can mean thousand of dollars between an inflated bureau score and the real deal from FICO.

What's the solution If you are looking for a loan-car, home, whatever-DON'T PRESS THE EASY BUTTON. Go to the extra effort of getting the one that counts. The FICO score. It may be a little more difficult to understand but it will pay for itself in the value of information it provides you.

What do they say about bad information? It leads to bad decisions. Make a good decision and get the best information-get a FICO score!

Jack Krohn is a leading free lance writer on Home Equity and with over 35 articles to his credit. He is also the #1 author of Home Security Articles in the country according to Ezine Articles. http://www.m-o-r-t-g-a-g-e-r-a-t-e.com Get up to 4 FREE No Obligation Mortgage Rate quotes and http://www.h-o-m-e-e-q-u-i-t-y-l-o-a-n.com FREE Home Equity Loan Information http://www.aaa-safetyfirst.com Need Help Defending Yourself, Your Family? Get help with the best self defense products available. ]]> Mortgage - 3 Hot Tips To Boost Your Fico Score http://www.artwoo.com/article/mortgage-3-hot-tips-to-boost-your-fico-score http://www.artwoo.com/article/mortgage-3-hot-tips-to-boost-your-fico-score#comments Sat, 13 Oct 2007 07:25:00 +0000 fico scorecredit scoresafetyfirstaaajourney of a thousand milesdue datehome equity loan http://www.artwoo.com/article/mortgage-3-hot-tips-to-boost-your-fico-score credit score is a long term process. As they say a starts with the first step. Beware of quick fixes. There are none except for the quick fix of getting into your wallet by way of a scam and there are some out there. Here are three sure fire ways to boost your credit score.

The biggest component of the is the percentage of available credit you are using. The traditional way of course is to pay down your accounts to improve the percentage. The higher the percentage the lower the score. There is another way.

1. ASK FOR CREDIT INCREASES This achieves the same result-decreasing the percentage of credit used. Just be careful not to use the new found "wealth". That is like shooting yourself in the foot. Be careful not to ask for too much of an increase.

2. PAY OFF YOUR BILLS Pay them off not when they are due but before they are due. Find the statement date (usually 20 or so days before the ) and pay it off a day or so early. That brings your account balance to $0 thus increasing the percentage of available credit. If you pay the bill on the due date it will not have the same effect.

3. DON'T TOSS THOSE OLD CARDS I found out about this one the hard way. If you are not using an old card for any reason do not throw it away. Take advantage of it and charge small amounts occasionally. This results in an active vs. and inactive status for that account. Active accounts are factored into the FICO scoring system-inactive accounts are not.

Using these three hot tips will boost your FICO score almost overnight. Take the knowledge and run with it and improve your score today. http://www.m-o-r-t-g-a-g-e-r-a-t-e.com Get up to 4 FREE No Obligation Mortgage Rate quotes and http://www.h-o-m-e-e-q-u-i-t-y-l-o-a-n.com FREE Information -.com" >http://www.aaa-safetyfirst.com Need Help Defending Yourself, Your Family and securing your home and business? ]]> Your Fico Score And Purchasing San Diego Real Estate http://www.artwoo.com/article/your-fico-score-and-purchasing-san-diego-real-estate http://www.artwoo.com/article/your-fico-score-and-purchasing-san-diego-real-estate#comments Wed, 06 Sep 2006 14:27:15 +0000 real estate mortgagefico scorethree major credit bureausmajor credit bureausfico scorescredit scoremortgage lenders http://www.artwoo.com/article/your-fico-score-and-purchasing-san-diego-real-estate real estate mortgage at a great rate. Simple, right? Definitely not!

Before a mortgage makes that real estate yours, the lender is going to check your , which will determine what type of terms they offer to you, how much you will pay over the life of the real estate mortgage, and even if you can secure a mortgage. Your credit score tells a lender what type of credit risk you are and the likelihood that you will repay the money loaned.

Though there are several types of credit scores, most real estate use the , which was developed by Fair Isaac. The FICO is used for several types of credit and can affect terms offered for credit cards, car loans, home equity loans, private mortgage insurance, the required size of your down payment, and even the amount of documentation a lender will require of you during your mortgage application. Your score determines what type of loan for which you are eligible, as well as how much money you can borrow.

Every person has three -- one with each of the : Experian, TransUnion and Equifax. Since the information retained by each credit bureau varies, your score will differ between the "Big Three". Before you begin hunting for real estate, it is a good idea to check all three bureaus for your FICO score, as well as right before securing a real estate mortgage. Even if you have checked your FICO scores recently, your scores fluctuate as new information is received by the credit bureaus. It is best to know for certain your FICO scores, than to be surprised during crucial negotiations.

Some of the things each credit bureau looks at in developing your FICO score are your payment history, the amounts your currently owe, the length of your credit history, new credit you have obtained, and the types of credit you use.

The Higher Your Score, the Better

There have been many commercials on television recently about the FICO score and how it follows you wherever you go (as far as credit is concerned). Just remember, the higher your score, the less you will pay to buy real estate on credit. You can save thousands of dollars every year, or you can pay thousands of extra dollars each year on your real estate mortgage, depending upon your score.

The median FICO score is 723, with most lenders requiring at least a score of 760 in order to get the best real estate mortgage terms. The highest FICO score attainable is 850; however, only 13 percent of the population score over 800.

According to http://myfico.com, a score of 760 or better currently makes you eligible for an average interest rate of 5.98 percent on a 30-year, fixed-rate mortgage of $216,000. The interest rate rises to 7.47 percent, if your score is between 620 and 639, which translates to paying an additional $227 each month or $81,720 for the life of the mortgage. A score below 620 can add another three-to-six percent interest. Even a point or two can make a major difference over time. As scores dip below the 700 mark, borrowers are often limited on how much money may be financed; while many lenders will disqualify you all together for a mortgage, even if the rest of your credit file is fantastic.

So, check your three FICO scores when you first decide to look for real estate. Get counseling in how to raise your scores, if it is below 760. If you must purchase sooner than you can repair your credit scores, then plan to refinance after you have raised your FICO scores. Buy real estate with terms that are to your advantage. Know your credit scores and repair any problems early. John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more on San Diego Homes for Sale visit http://www.twtrealestate.com ]]> Easy Steps To Maintain A Good Credit Score http://www.artwoo.com/article/easy-steps-to-maintain-a-good-credit-score http://www.artwoo.com/article/easy-steps-to-maintain-a-good-credit-score#comments Sun, 16 Jul 2006 16:27:07 +0000 free credit reportannual credit reportfico scoreexperiancredit reporting agenciestransunionequifax http://www.artwoo.com/article/easy-steps-to-maintain-a-good-credit-score
By law you are able to obtain a copy of your credit report free every 12 months from each of the three nationwide , , , and . The three companies have formed a central agency so that you can request a copy from all of them at once. It's called and can be accessed online.

This can be a valuable tool in maintaining your lifestyle and can save you money. By monitoring your credit report on a regular basis, you can catch any errors that may have been recorded and see that they are corrected immediately. Also with the increased crime of identity theft, with a vigilant eye on your credit reports, you can catch any funny business early.

There are just a few things you need to do to maintain a good credit score.

-First and foremost, make your payments on time.

-Stick within your budget and manage your debt.

-Do just what you're doing and monitor your credit report regularly to correct any possible errors.

-Try to avoid any unnecessary inquiries of your credit report, as each request can be marked against your good credit score.

-Reduce your credit card balances if they're limited out.

-If you don't have enough credit history, you may consider applying for new credit.

By carefully reviewing your credit report on a regular basis, you can be sure that you maintain a good . "What is a FICO score?" you say.

The FICO score is the 'grade' with which financial institutions use to judge the risk they take when extending you credit. The higher the FICO score, the better. The scores generally range from 499 - 800 plus.

By keeping a close watch on your credit reports, you can help to protect your good credit. Whether it's a car loan, credit card, or mortgage, your credit score can dictate the interest rate of your new loan. A good credit score can save you money. Bradley Carson is the webmaster and editor of Apply Online For A Credit Card at http://www.cards-king.com A website established to provide concise information about credit cards and credit card offers from premier financial institutions. ]]> Bad Credit : Understanding The Basics http://www.artwoo.com/article/bad-credit-understanding-the-basics http://www.artwoo.com/article/bad-credit-understanding-the-basics#comments Fri, 19 May 2006 21:32:08 +0000 fico scorefair isaac corporationcredit scorescore rangescredit scoring systemborrow moneycredit cards companies http://www.artwoo.com/article/bad-credit-understanding-the-basics Fair Isaac Corporation designed a that is called the . Because the three major credit agencies have different information on each consumer, the FICO score calculated by these agencies won't be exact.

Your FICO score has become the best way to determine if your credit is good or bad. To get your store, information in your credit report is compared to the credit reports of others. Your future credit activities can be determined by this information. When you apply for a loan, lenders will look at the FICO score to determine if they should allow you to . Having a low score doesn't automatically mean you won't be allowed to get a loan.

In the past, having any marks on your credit report would cause lenders not to loan you any money. They had no way of determining which borrowers would pay off their debts. With the advent of the FICO score, more people today who have had problems with their credit in the past are now able to apply for loans. Mathematical models allow lenders to study the behavior of borrowers to decide whom they should lend money to. Banks and have taken advantage of this data by making offers to people who have different credit issues.

Those who have problems with their credit can usually apply for loans, but they can expect to have much higher interest rates. The FICO from about 300 to 850. The closer you are to 850, the better your score is. Statistics show that the average American has a that is about 677. To qualify for loans that have the best interest rates and features, you will need to have a score that is at least 720. If you want to know your credit score, there are a number of services that will charge you a fee for it.

A number of factors go into calculating your score. The most important factor is your payment history. How you make your payments will determine about 35% of your score, which is almost half. Failing to make payments on time is one of the leading causes of getting bad credit. Your payment history includes payments on credit cards, loans, and other bills. Filing for bankruptcy can greatly lower your score.

The amount of money you owe will determine you score as well. People who have too many loans and credit cards will have a score that is lower. If you have a long credit history that is good, this will increase your score. Lenders are much more likely to give good loans to people who have established credit. It is important to understand the different things that affect your credit score, because this could allow you to maintain a high score.

If your credit score is low, this means that you need to start making payments on time. If you have a large number of loans and credit cards, get rid of some of them. Being responsible with how you manage your credit will allow you to keep a high credit score. Lenders will be much more likely to give you the best rates and features on loans. Even if one lender rejects you, this doesn't mean that all lenders will reject you. Understanding credit and how to manage it will allow you to remain financially successful. Joe Kenny writes for the personal loan comparison and information sites http://www.ukpersonalloanstore.co.uk and also http://www.selectloans.co.uk ]]> Fifo Score - Best Way To Improve Your Credit Report Fico Score Fast! http://www.artwoo.com/article/fifo-score-best-way-to-improve-your-credit-report-fico-score-fast http://www.artwoo.com/article/fifo-score-best-way-to-improve-your-credit-report-fico-score-fast#comments Wed, 02 May 2007 09:15:00 +0000 fico scorecredit scorehigh scorefair isaac corporationtransunionexperianequifax http://www.artwoo.com/article/fifo-score-best-way-to-improve-your-credit-report-fico-score-fast


To put it simply, a is similar to a report card (I know, we have all been through that) where you would get a good nagging for something low and reward for a .



Contrary to what many people believe, there is no one universal way of categorizing credit score where the last time you took an extra 5 pennies from the cashier would be recorded on your credit score.



There is however, a widely used well known credit score in the United States, commonly known as FICO or . basically indicates the likelihood of a person to default a loan and this is a commonly adopted tool by most consumers banking and credit industry.

Before going into the discussion on how FICO rating may be improved, it is worth to have a rough idea on what FICE rating is based on.



Basically, 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% - types of credit used (installment, revolving or consumer finance) -10% - recent search for credit and/or amount of credit obtained recently.



The first step to improving a FICO rating is to get a copy of your own credit report. This can be attained from and Fair Isaac, or .



After that, brace yourself for the agony (or joy if you're an accountant) of going through all the numbers and making sure everything adds up to the best of your knowledge.



Reason is because if something is wrong in the report, it's best to get them corrected because it can take up to months to get a proper correction.



Secondly, if you have serious credit car debt where most of your card balances are close to the credit limit, it's best if you pay them off as soon as possible.



The banks and lenders prefer a large gap between a credit card balance and the credit limit, approximately to a ratio of 40% between balance/limit. Paying off any excess credit card debt would definitely increase the FICO score as it takes up 30% of the FICO score.



Next, it is equally important for you to pay off your debt on time. Despite being able to pay off your debt, it would not go down well in your FICO score if you do not pay your debt on time and every time.



The punctuality of your payment takes up 35% of your score and it is important to know that paying your debt on time now is outweighs the fact that you paid your debt on time 3 years ago.



It is always important to maintain your longest standing account. Reasoning behind this is 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 are.

For example, even if you score a relatively high score, if you 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 acquire a larger amount of loan or a lower repayable interest rate.



All in all, 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 track of where you are heading in your spending, mortgage and loans. This is not too tough now, is it? The new bankruptcy law provisions have prevented people from above a certain income level from being able to eliminate or cancel their debt through bankruptcy. Find out more on how you can save yourself with Sunny's essential debt elimination resource website at http://www.mydebtelimination.info ]]> Your Credit Score And A Low Interest Debt Consolidation Loan http://www.artwoo.com/article/your-credit-score-and-a-low-interest-debt-consolidation-loan http://www.artwoo.com/article/your-credit-score-and-a-low-interest-debt-consolidation-loan#comments Fri, 14 Sep 2007 05:30:01 +0000 debt consolidation loancredit scorefico scorescore worksscore systemconsolidating your debtthree major credit reporting agencies http://www.artwoo.com/article/your-credit-score-and-a-low-interest-debt-consolidation-loan
If you are wondering whether or not a low interest is right for you, you likely have a number of questions. In this regard, you may be wondering how and why your might effect your overall ability to obtain a low interest debt consolidation loan.

Through this article, you are provided with an informational overview of the role your credit score plays when it comes to applying and qualifying for a low interest debt consolidation loan. By considering this information, you will be in a better position to determine whether or not it will be worth your while to make application for a low interest debt consolidation loan at this point in time.

How Your Credit

You credit score -- or as it is called from time to time -- is computed based upon your credit history. In point of fact, the specific manner in which your credit score is determined is a proprietary secret of the Fair Issac and Company, the entity that worked with the to develop the credit or FICO in the first instance.

It is generally appropriate to consider your credit score as being something akin to a grade based on the manner in which you've used credit and dealt with your debt in the past. Of course, this is a simplistic explanation about how your credit score works =85 but, it is also an accurate way of explaining the way the credit or FICO score does work.

How Your Credit Score Will Impact Your Low Interest Debt Consolidation Loan Eligibility

If you credit score dips too low, you no longer will be able to obtain a low interest debt consolidation loan. In fact, your credit score really does need to be in the good to excellent range for you to have the ability to qualify for a low interest debt consolidation loan. In other words, if you are interested in as part of an overall debt management program or plan, you need to be proactive and actually seek out a low interest debt consolidation loan before your financial situation becomes out of line, negatively impacting your credit score and rendering it unlikely that you will be able to obtain a low interest debt consolidation loan.

Dealing with a Low Credit Score

If you do have a credit score that falls below that point at which you would be more likely to be approved for a low interest debt consolidation loan, you will want to forgo applying for a low interest debt consolidation loan for the time being. You will want to take steps to better your credit score in advance of applying for a low interest debt consolidation loan. Steps that you will want to consider taking include bringing all of your credit accounts current and paying down -- at least to some degree -- the balances on some of your credit accounts. You will also want to make certain that there is no incorrect information on your credit report that is negatively impacting your credit score. Thomas Erikson is co-founder of http://www.your-debt-consolidation-loan.com which provides debt consolidation information and solutions. Find out how you can effectively get your finances under control with a Low Interest Debt Consolidation Loan. ]]> Low Credit Score Home Loans - Mortgages For People With Poor Fico Credit Scores http://www.artwoo.com/article/low-credit-score-home-loans-mortgages-for-people-with-poor-fico-credit-scores http://www.artwoo.com/article/low-credit-score-home-loans-mortgages-for-people-with-poor-fico-credit-scores#comments Wed, 22 Aug 2007 03:20:01 +0000 raise your credit scorefico credit scoremortgage loangetting a mortgagepoor credit mortgagemortgage companieshome equity loan http://www.artwoo.com/article/low-credit-score-home-loans-mortgages-for-people-with-poor-fico-credit-scores home equity loan, getting a with poor credit history can be tough. In the eyes of the lender, having credit problems puts more emphasis on the other qualifying factors to determine whether or not you can get approved.

Here are some tips to help you get approved for a mortgage loan:

1. Consider ways to come up with a down payment - Even a 2-3% down payment can affect your ability to get approved for a mortgage loan or help you get a lower interest rate on your loan. There are many creative ways to come up with a down payment. Sometimes it can be worth saving for a few extra months or a year to come up with a down payment.

2. Lenders will be looking closely at your income and job history - With bad credit, lenders are going to want to make sure that your income is more than enough to cover all of your minimum payments. The longer you have been at your job, the better. If you are close to the one year mark for your employment, consider waiting a little longer at your job before you apply for your mortgage.

3. Lenders will want to see your most recent debt payments being made on time - Even if you have had credit problems in the past, lenders will be looking closely at your payment history over the last year or two. They will be most interested in how you make your auto, utility and credit card payments. If you are consistent with those payments now, the lender may be willing to overlook past credit problems.

4. Try using techniques to increase your credit score - There are many tips available online to help you . There are 16 ways to improve your score here. You can dispute online, for free, any inaccuracies that are shown on your credit report. This can begin raising your score, sometimes within 30 days or less. http://mortgagesanity.com/2007/02/07/ways-to-improve-your-fico-credit-score= / - We have compiled a list of reputable companies online. Try applying here first. ]]> You And Your FICO Score http://www.artwoo.com/article/you-and-your-fico-score http://www.artwoo.com/article/you-and-your-fico-score#comments Tue, 25 Sep 2007 07:35:00 +0000 average fico scorefico credit scorethree fico scoresthree credit bureausexperianwhich means thattrans union http://www.artwoo.com/article/you-and-your-fico-score
The FICO score will be used to evaluate your qualification for a particular credit line or loan program and to calculate the applicable interest rate. Depending on their specific institutional needs, some lenders may use the highest FICO score or the middle score, or only one if the credit transaction is for a consumer purchase.

For instance, if you were to apply for a house credit card at a department store, they would run your credit profile (with your permission, of course) to obtain a FICO score. On the assumption that the store reports to only one of the =96 as most department stores tend to do -, then the inquiry will go only to that bureau. The store would make its decision based on only one bureau's information, and by using only the one FICO score.

The system works differently for mortgage credit. Banks report to all three credit bureaus (, Equifax and ), so they would get three different FICO scores, calculated on three credit reports that the credit bureaus sent for scoring by FICO. Since there are , banks generally will use the middle or . Depending on the type of financing you are seeking, whether it is for a new car, appliances, a credit card, or a home mortgage, your FICO score makes up a significant portion of the decision-making process. The FICO score will determine the premium rates you pay for insurance and the interest rate available to you on a loan.

Your FICO score is usually a composite of the following:

35% of your FICO score is payment history, and the key items include frequency, severity, and most recent occurrences of non-payment =97 all late or missed payments will hurt your FICO credit score, but missed payments of more recent dates will have bigger effect;

30% of the FICO score is credit utilization, and estimates the balance of credit accounts in relation to the maximum credit available, with revolving credit lines (usually, credit card accounts) being the most significant;

15% of FICO scores cover credit history, the number of years credit has been established (the longer, the better; and one trade credit line for 5 years will affect the FICO credit score better than 2 trade lines for 6 months);

10% of the FICO score involves type of credit, which will monitor the mix of revolving credit inquiries, but will not include inquiries with no finance rating (as an inquiry from your employer, for instance).

As mentioned earlier, there are three FICO scores developed by the Fair Isaac Company =96 one each from the three major credit bureaus. Experian has the Experian/Fair Isaac Risk Model; Equifax has Beacon; and, Trans Union has Empirica. Consumers are likely to have a different rating with each agency, because although they all use the FICO model, each credit reporting bureau has its own set of reporting companies and there may be variations in the credit information that they send for calculation of FICO score.

There are other types of FICO scores:

=95 Application Risk Score =96 In this set-up, the lender uses a scoring system that includes a FICO score but also considers information extracted directly from your credit application.

=95 Customer Risk Score =96 Also called "behavior scores"; here, a lender may use the scores to make credit decisions on its current customers; this score uses the FICO score and also information on your payment history with that lender.

The range on your FICO score is from 300 to above 850 and would suggest a credit profile as follows:

FICO score 720 and above: This is a very good FICO score, and it suggests that the risk of default on your credit is very low. If the lender should find any exceptions in your credit report, these will easily be waived and set aside; and if there are any weaknesses in underwriting your credit, your high FICO credit score favorably compensates for that weakness.

FICO score 660 to 719: This is also a good FICO score, and suggests that your risk of default is low. This FICO credit score indicates that your credit history is acceptable.

FICO score 620 to 659: This FICO credit score represents a degree of risk. You can qualify for 100% financing, but certain conditions may be included in the credit agreement. The credit underwriter will more than likely consider you, but will investigate further to check whether you are: recently self-employed; have high loan to value ratios; have low cash reserves; exceeding normal debt to income ratios; staying in multiple dwelling unit properties.

FICO Scores below 630: Anything below 630 is a really bad FICO score. Your risk of default is very high, and you will need to present strong compensating factors to minimize credit risk before the underwriter would consider approving a loan. Some lenders may be willing to arrange 100% financing.

FICO score between 619 to 585: The underwriter can consider approving a loan but that depends on the credit issues, and may also consider an applicant with no previous delinquency and lack sufficient credit. Lenders are more likely to see mortgage delinquencies if they loan money to a consumer with a FICO score below 620.

FICO score between 584 to 500: You will have to explain your credit history in writing, and will need to pay off some of your debts and other payables; the underwriter may still consider you acceptable but the high risk factors should not be layered.

FICO score below 500: There may some serious issues outside your control that caused the setbacks. There are individuals who do not care so much about what happens to their credit. Perhaps this is what we should call Bad Credit. This does not mean the world has ended, though, and there is still hope.

The moment your credit report changes, your FICO scores will change as well. Your FICO credit score does not change from one month to the next at random, unless there has been a late recorded payment or an adverse report. While a late payment, collection or bankruptcy can be very damaging and will immediately lower your FICO scores, it takes time before you can raise your FICO scores. It is good to get in the habit of checking your credit profile every 3 to 6 months.

Your credit report must contain at least one trade line over a six-month period in order for a FICO score to be generated, and must have one trade line that has been updated in the last six months also. This will insure that there is enough information =97 and enough recent information =97 to calculate a FICO score.

Your FICO credit score is meant to be a measure of your creditworthiness as a borrower. In the mortgage industry, mortgage products change constantly, so if you manage your credit well you will almost certainly qualify for an advantageous home refinancing- or home purchase program. In the case of revolving credit lines, your account is reviewed periodically, and if you manage it well, you will likely be given more perks and privileges. Devin Gilliland provides expert opinions and reviews about credit cards at http://www.credit-wisdom.com ]]> Easily Fixing Your FICO Score http://www.artwoo.com/article/easily-fixing-your-fico-score http://www.artwoo.com/article/easily-fixing-your-fico-score#comments Wed, 17 Sep 2008 06:15:31 +0000 part time jobscredit card balancefico scorepizza deliverycredit scorecredit bureaushome auto http://www.artwoo.com/article/easily-fixing-your-fico-score FICO score, you're not going to be able to get a loan for your next home, auto, or even a personal loan. Since most of us can't just throw down a few hundred thousand for a house, it's important that we get a mortgage. Now having a bad FICO score doesn't mean you can't get a mortgage ever again. There are just some steps you need to take in order to improve your FICO score so that you can get that loan once again.

Get a credit report -- If you haven't received a credit report yet, you should go out and get a copy of your credit report to look it over. Make sure that you get a free report that the government allows you to get every year. When you get a hold your credit report, look it over and see if anything looks wrong or shady. If something looks fishy, you'll want to fix it as soon as you can. There are many steps you can take; the first step I suggest you take is by calling the and seeing what you can do from there.

Pay your bills -- No matter what you do with your bills, make sure you always attempt to pay off the minimum at least. If you don't pay your bills, you're going to get hit with late payment fees and this will affect your a lot. Make sure that you pay at least the minimum. If you can't afford to pay the minimum, I suggest you go out and find another ways to get money. There are many out there that you can pay you a few extra hundred dollars a week like or working a retail store.

Get rid of your balances -- When you're trying to get out of debt, make your number one focus to pay off your . Try and put as much money toward your debt as possible. This means you'll want to cut back on the leisure expenses and focus on debt. So, instead of eating out for thirty dollars, make a five dollar meal at home and put that twenty five toward the debt.

Close a few accounts -- If you have a few accounts laying around that you don't use anymore, call up the credit card company and close them. Make sure that you know what you're doing thought because some of your old accounts may be helping you. Credit companies love to see older established accounts. If your report shows nothing but new accounts, the companies will be a little suspicious of this. Make sure that you close a few accounts that aren't as old as your oldest one.

If you can focus on paying off your debt and making a lot of money, fixing your debt shouldn't be that hard at all. As long as you're focused and determined to pay it off, you should have a problem at all.Find the secured cards and more of Tom's work at FINDsecuredcards.]]> Fico Frequently Asked Questions http://www.artwoo.com/article/fico-frequently-asked-questions http://www.artwoo.com/article/fico-frequently-asked-questions#comments Sun, 16 Dec 2007 13:19:58 +0000 fair isaac companycredit reputationnumerical calculationmyficocredit scoredebt consolidationfico scores http://www.artwoo.com/article/fico-frequently-asked-questions credit score. You've received the credit report, gone through it, and everything looks pretty much in order. Do you have a few questions about what FICO actually means? Don't worry, you're not the only one.

First, what exactly is FICO and what does it stand for? It stands for , which created the most commonly used credit score on the market. It is an industry term and is a measure for your credit score.

What specifically is a credit score and what can it say about a consumer? A credit score is a based on many different factors. The score can be anywhere between 350 and 850. The lower the number, the worse the rating, the higher the number the better off you are.

Different factors can determine your magic number. These include: past behavior and whether you made payments on time, how much credit you had in the past, and income. A high number generally means the individual is more likely to pay on time and not lose a creditor any money. A better credit score could help you get a better deal on if you need it, although by the time you need debt consolidation help, it's likely your credit rating is pretty damaged.

Of course, everyone has a right to view his or her . For more information, go to the website. A lot of people don't realize how to best use their credit scores and the information that they reveal, and when you see them, you'll know whether you need to improve. Make note of which debts need to be reduced or eliminated most immediately, for a place to start. You are also able to see if there is any incorrect information on there and correct it.

You should also know that the lender looks at more than just your overall rating. There are three additional factors that will affect whether or not you can secure a loan. The first is your or your score. The second is what, if any, collateral you have to put up against the loan. Finally, the lender will look at your general income; this will give them a clearer picture of your ability to pay the loan. Someone with a lower credit score but positive other factors may have a better chance in some instances than someone who has the opposite.

What factors affect your credit rating? Some of these things include late payments, the amount of the payment and how tardy you were in paying it. More recent instances of this will have a heavier negative impact than will something that happened a while ago. Bankruptcies, of course can also greatly affect your FICO score. How long has your credit been substandard? That can also affect your number.

Lenders may also look at include new credit applications, how much money in total you owe, how much credit history you have, and what kind of outstanding debts you have. These are all important things to remember when applying for any kind of loan or debt consolidation.

Is there a best way to fix your FICO score? Well, first, straighten out your finances. Pay your bills on time and bring current any that are past due. Although you should pay off credit cards and then cut them up if you can't trust yourself not to use them, you should not close accounts unless you will find this too tempting. This is because closing accounts can actually lower your credit score.

So, too, will opening new ones. You may want to keep one credit card for emergencies only, and put it in a container of water and freeze it, so that to get to it, you have to thaw the ice first. This will help make sure you really do only use it for emergencies. Pay credit cards off as fast as possible, starting with the highest interest rate first and making minimum payments on the others. Double-check your credit report and the information on it to be sure everything is accurate.

A final tip is that you should not apply for any new credit card debt, at least until your accounts are all current and you are credit card debt free. This will further raise your score. Kenneth Black is the owner of the Debt Relief Today and Debtreorg websites, all designed to help you get out of debt. Visit http://www.debtreorg.com to learn more about FICO scores and credit scoring. ]]> Improve My FICO Score - 5 Key Components http://www.artwoo.com/article/improve-my-fico-score-5-key-components http://www.artwoo.com/article/improve-my-fico-score-5-key-components#comments Wed, 03 Oct 2007 19:34:59 +0000 fico scorecredit scorethree credit reporting agenciescredit reporting agenciestransunionexperianpayment history http://www.artwoo.com/article/improve-my-fico-score-5-key-components Three (viz., Equifax, , and ) based upon a shared formula. Your score has a huge influence on your financial health. An improvement of just 40 or 50 points can mean paying hundreds less per month for a 30-year mortgage, for example. Anything you can do to increase your can literally mean money in your pocket.

The creators of the FICO score, the Fair, Isaac and Company, hold their exact formula for calculating your score under lock and key as top secret. But, they have made public the 5 main components of your and how heavily each component is counted in the formula. The breakdown is as follows (note: this information is subject to change at any time, so be sure to check the Fair, Isaac and Company Web site or recent press releases for the most up-to-date information):

: 35% Amounts owed: 30% Length of credit history: 15% New credit: 10% Types of credit used: 10%

Based upon these 5 components, here are some quick tips for keeping each one looking good in the eyes of the Big Three credit reporting agencies:

Payment history: Of course, if you have never made any late payments on any of your accounts, your payment history should look quite attractive. Items in your past that can bring down this part of your score are: bankruptcies, law suits, and wage attachments. Avoid these, as well as late or defaulted payments, and the payment history portion of your score will be squeaky clean.

Amounts owed: This component basically boils down to a ratio of the amount you owe to the amount of credit extended to you. Also factored in is the number of credit accounts you now have open. For example, if you have multiple credit cards with a total of $10,000 in credit lines but you owe a total of $5,000 on those cards, your ratio is 50%. Obviously, the lower the ratio, the better. In terms of the number of accounts open, credit bureaus like your having at least a few accounts open (to show you are capable of paying your debt), but they also do not want you to have too many accounts open (since that could make you look overextended). The guide here is balance.

Length of credit history: This component actually factors in two items: the total length of your credit history (i.e., how many years since you opened your first credit card account or got your first car loan, etc.) and the average length of time your current accounts have been open. In both cases, the longer, the better, in terms of your FICO score.

New credit: If you are building your credit score, try not to apply for too many new credit cards or loans at once. Instead, take your time and slowly build up a borrow/payback history with each loan instrument over the course of 6 months or a year.

Types of credit used: Having multiple types of credit can help your FICO score. This refers to, for example, a mix of revolving credit cards (e.g., MasterCard or Visa), charge cards (e.g., American Express or Discover), installment debt (e.g., mortgage or auto loans), store charge accounts, etc. Again, having these multiple types of credit is only useful if you keep the balances low relative to your total credit line (see "Amounts owed" above).

By remaining aware of what factors the Big 3 credit reporting agencies use to calculate your FICO score, you are on much more even footing in terms of aligning your spending habits, payback habits, and types of instruments you have open with their expectations of what constitutes a "good" borrower. For insider tips on improving your FICO credit score by up to 249 points in 90 days, download the Credit Secrets Bible right now at: http://www.Success-Junky.com/ ]]> Improve Your Credit Score And Consider More Homes http://www.artwoo.com/article/improve-your-credit-score-and-consider-more-homes http://www.artwoo.com/article/improve-your-credit-score-and-consider-more-homes#comments Mon, 13 Aug 2007 05:25:01 +0000 improving your credit scoreimprove your credit scorefico scoreannualcreditreportfair isaac corporationincrease your chancescredit reporting agencies http://www.artwoo.com/article/improve-your-credit-score-and-consider-more-homes FICO score, credit history and PMI for the first time. For many, obtaining loans for homes is the first time they have needed to pay attention to their credit score, and it may be the wake up call that introduces them to the impact that credit history can have on monthly expenses. The truth is that more attractive homes will be in your price range if you have a higher credit score. If you find your self on the path to home ownership for the first time, here are the terms you need to know, and the actions you can take, to put yourself in a good position for looking at the homes you really want.

Know Your FICO Score

Knowledge is power right? Well, the first thing to know is that a FICO () score is a report card of your credit history. Every late payment you've ever sent, any defaulted loans, and the multiple times you may have transferred balances to a lower interest rate card all impact your FICO score. Your score can be anywhere from 300-850, and you want it to be as high as possible.

Loans for homes, and interest rates, are highly dependent on your FICO score. A higher FICO score equals a lower interest rate. And a lower interest rate means lower monthly mortgage payments on new homes.

Steps to

Planning ahead can make a huge difference in and lowering your homes' mortgage interest rate. Under the Federal Credit Report Act you have the right to view your credit report. To obtain a free copy annually go to .com" >http://www.annualcreditreport.com Your credit score can be improved and greatly of getting loans for homes, and your interest rate. If your credit score is less than 650, you have some serious work to do.

Deal With Disparities

It's not uncommon for the to make mistakes in your credit report. Your first step is to contact the agency with your dispute and make it right. Eliminating just one report of a defaulted loan, or late payments, can make a significant impart on your credit score.

Say No to Target and Yes to More Homes

Well, not Target stores specifically, but if your goal is to get the best rates on loans for homes possible, then hold off on applying for any new credit cards or taking advantage of those balance transfer deals. Applying for new cards frequently is a major factor in lowering your credit score.

Pay Off Debt

Many homes are on the market today because the owners defaulted on their loans. The homes in your price range will be determined by the monthly payments you can afford to make. If you are just starting the process of looking at homes in your area, then you are in a great position to pump up your credit score.

Start by paying off any consumer (read credit card) debt as fast as you can. This will lower your monthly payments, improve your credit score, and could end up giving you more money to put down on the homes you are looking at.

Homes and Loans

Your goal is to be able to consider the best homes in your price range. And raising your credit score now will impact that price range. You really do have a lot of control over your credit score. And that means more control over the homes you can choose from when the time to make that first home buying purchase finally arrives. John Harris is a researcher and writer on applicable real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit http://www.twtrealestate.com/RanchoBernardo-homes.html ]]> What Is A FICO Score? http://www.artwoo.com/article/what-is-a-fico-score http://www.artwoo.com/article/what-is-a-fico-score#comments Tue, 18 Mar 2008 03:15:01 +0000 fair isaac cofair issacinstallments loanscredit inquiriesmoney fairstore chargescredits cards http://www.artwoo.com/article/what-is-a-fico-score Fair Isaac Co. to help determine the likelihood of you paying if a company agrees to loan you money. Fair Isaac s the only ones who know exactly what makes up their algorithm, which is the mathematical formula used to calculate your score

FICO scores are calculated from five factors reported from the three major credit reporting agencies. These five factors are how well you pay, how much do you owe, how long have you had credit, how much new credit do you have, and what types of credit are you using. Seven additional factors are then added and using a "secret formula" determines your score.

Included in your payment history are items like bankruptcies, judgments, suits, liens, wage garnishments, collection items and delinquencies. Credit availability, includes how much you owe, what types of accounts they are, and what percentage of all the credit you have that you are using. Under length of credit history the items that are considered are how long your accounts have been opened, what types of accounts they are, and and when did you last use them. New credit includes items like , inquiries due to credit application, how many new accounts have your opened recently and what types of accounts are they? Types of credits used includes , retail accounts, in , , and mortgages. And it has even made a difference if you only have one brand of credit card.

Here are the percentages for each part:

35% payment history, 30% amount owed 15% length of credit history, 10% new credit 10% types of credit

What is not part of your FICO score is how much you make, how old you are, where you work, how long you worked, or what type of job you have, where you live, what race you are, your color, your religion, sex, or natural origin have no effect. It doesn't matter whether or not you are married. It also does not matter how much your interest rates are. Anything that has to do with alimony or child support, is not included. If you or your employer check your credit through one of the credit bureaus your score will not be affected. Finally if you are working in any kind of credit counseling program, that in and of itself will not affect your credit, however some credit counseling programs do suggest that you do things that will negatively affect your credit. If they negotiate any type of settlement for less than the full amount owed, or even if they negotiate a payment per month that is less than the minimum payment due each month it will most likely have a a negative effect on your credit score. The reason why credit counseling programs have such a bad name is that very few who start actually complete the program as agreed and a number of people who do use credit counseling programs go bankrupt anyways. Denise Martin is the President of Premier Legal Credit Repair in Washington, DC. Premier Legal Credit Repair is an expert in helping clients establish excellent credit. For more information go to http://www.premierlcr.com. ]]>