Page 5 - 6 TIPS FOR CREDIT SCORE

6 SIMPLE THINGS YOU

CAN DO TO INCREASE

YOU CREDIT IN SCORE
CREDIT SCORING Frank Bullington
2021

Frank Bullington

Credit scoring is a system creditor use to help determine whether to issue you

credit, how much credit to issue and how much to charge for it. When you apply for

credit the creditor or lender WILL request a copy of your credit report. These reports

will be generated for one or more of the three credit bureaus, Experian, Equifax and

Transunion. These bureaus grade your “credit worthiness” by calculating your credit

history using a system called The Fair Isaac Model. They use a variety of information

such as your payment history, the type and number of accounts, late payments,

collections, debt and the age (history of those accounts). They want to first determine

your scores and see if you have any derogatory items on that report. The most recent

negative items are the ones that will hurt your credit the most.

The outcome of those calculations is called your FICO Score. FICO scores range from

300-850. But the majority of most peoples scores fall between 600-700. The higher

the credit score the lower the risk. A FICO above 720 will get you a good mortgage

rate, auto loan and qualify you for most credit cards. A FICO score of 720 and above is

considered excellent credit. A Fico score below 720 is good but will not qualify you for

the best rates or offers. A FICO score below 620 will make it difficult for you to qualify

for loans and the rates will be much higher costing you more money.

Correcting mistakes on a credit report will raise your score. To do so takes time

depending on how many items you have and which type of accounts. It is your

responsibility to correct mistakes and obtain copies of your credit report. We

recommend IdentityIQ to order your reports and monitor your progress. It is

exceedingly difficult to get where you are going if you do not know where you are

currently. So order your report today at EXCELLENTCREDIT4U

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