Whether its buying a home, car or just opening a bank account, in today’s world credit is needed for virtually everything. But what is credit exactly? Credit is what financial experts refer to when it comes to a personals financial prospects, and is often determined by a number know as a credit score. There are several companies that calculate credit scores, the most popular being FICO®. FICO® scores are used by the three major credit bureaus.
FICO® scores consist of a range between 301 and 850 points, with 301 being the absolute worst credit score you could have and 850 being the absolute best. The better your credit score is, the more likely you are to qualify for high lines of credit – and the better your interest rates and fees will be. The following is a more accurate breakdown of that range:
FICO® takes into account a number of different factors in order to determine your final credit score. This credit score can improve or worsen over time depending on your current financial standing and actions. The following are the five main categories that factor into your FICO® score and how they are weighed:
Keep in mind that these are the factors used for the general population. For those people that don’t have a very long credit history, the weight at which these factors are weighed may be different.
If you have a low FICO ® score, then you can work to improve it. The following are a few things that you can do to improve your FICO® score:
In order to improve your score it is important to understand how your FICO® score works. For additional advice on how you can improve your FICO® credit score, be sure to contact us at BoostMyScore today. We can help you add positive history to your credit report through piggybacking credit tradelines to drastically and immediately improve your credit score.