Your credit score is a computer-generated number that is designed to predict the likeliness you will abide by the repayment terms of a future debt or loan, based on the way you have handled debts in the past.
Credit scores were created to help lenders and banks to determine a person’s credit worthiness in a more efficient manner. Before credit scores existed, bank underwriters were forced to read entire credit reports, line by line, to make a judgement on a loan application. This long and tedious process was extremely costly and prone to mistakes, so the Fair Isaac Corporation created a computer program to replace the human in the equation, by programming a software program to read an applicant’s entire credit report and determine a number value, based on the data points in the credit report. This new software, called the FICO Score (R) made the underwriting process more efficient, more accurate, and less costly to the lender.
There are hundreds of credit score variations, but the most commonly used version is the FICO Score(R). FICO scores are usually between 350 for the lowest score and 850 for the highest credit score possible.
Seeing as how all credit scores were designed to help lenders predict the likelihood you will repay future debt obligations, based on the performance of previous and current loans, it is critical to understand the scoring models assume everyone – even the most financially stable person in the world – is a credit risk. The banks and credit scoring models assume that even an applicant with an 850 credit score will default on a loan in the future.
To learn more about your credit score and how it is calculated, click here.
BoostMyScore can help improve your credit score fast by adding tradelines to your credit report. To learn more, give us a call today: 1-800-531-1472
Our Primary Cardholders are required by contract to keep you listed as an Authorized User on their credit card for no less than 60 days. As a result, we guarantee the history of the card you have chosen will remain on your credit report for at least 60 days. In the unexpected event that the card(s) falls off your credit sooner than 60 days, we will either issue a pro-rated refund of your money, or re-add you to the card for an additional reporting cycle, at no additional cost to you. If the card does fall off your credit report after the 60-day lease term expires, and you are still in need of a boosted credit score, we can always renew your lease under the same terms.
All our Authorized User trade lines are personal credit cards. While we cannot help build your business credit profile, building your personal credit first can be a huge help in obtaining business credit.
Also, keep in mind that business accounts typically only report to the business reporting agencies, Dunn & Bradstreet, Experian Business, and Equifax Business, and not to the personal credit reporting agencies (Experian, TransUnion, and Equifax), and therefore do not help your personal FICO® score.
Go out and apply for your loan, apply for the job you wanted, or for premium car or home owners’ insurance! Start your own business! But whatever you do, remember one thing, this is not a ticket for a shopping spree. Be responsible with your new credit score. Be smart. Plan ahead and stick to your plan. It is very easy to succumb to the temptations of the credit world, but it is those of us who can manage our emotions with self-control and logical reasoning who will become masters of our financial future.
Remember, a good credit customer is one who can pay off their ENTIRE balance in full every month. Practice this and it will repay you for the rest of your life.