25 Aug Credit Score Basics – The More You Know The Higher It Goes!
Credit Score Basics
A credit score is a three-digit snapshot of your creditworthiness. Several different versions exist, from the ever-popular FICO to VantageScore and RiskView. Some are customized for mortgage lenders while others are customized for auto lenders. The usual range of these credit scores is 300 to 850. The higher your credit score, the better your credit.
FICO is the most common credit score calculation, so let’s look at what it covers.
What affects your score?
- Payment history—on-time payments, missed payments
- How much you owe compared to how much credit you have available
- How long you’ve been a borrower—the longer, the better
- If you have a variety of lines of credit – mortgage, car loan, credit card
- How often you open new credit – open too frequently and you look desperate
Your credit score doesn’t care about certain things
Even though it’s a key part of your finances, your credit score does NOT care about your income. Wealthy people can have terrible credit scores regardless of the money they have to deal with the fallout.
Your credit score does not depend on your zip code, your job, your age, or anything other than how well you’re managing your credit.
You can change your credit score
Missing just one payment on your credit card will cause your credit score to nosedive. Successfully disputing an error on your credit report will cause your score to go up as soon as the paperwork processes.
Your score can change. Raising your score just a few points, say between 680 and 700, can open a whole new level of savings. Banks will offer you lower rates on mortgages, car loans, and credit cards.
Raise your score, starting today!
Call Honore’ Credit Consultants today so we can discuss options for helping to improve your credit profile! (844) 967-3724