June 30, 2010
June 29, 2010
What Makes a Good Credit Report Score?
Francine Denson asked:
The FICO standard scale ranges from 350 all the way to 850. So, you’re probably wondering- what exactly is considered a ‘good’ credit report score? In this article we will demystify credit ratings and discover what level you should aim for to increase your borrowing power.
Establishing what constitutes a “good” credit score is pretty easy; matter of fact, it’s a standard formula. Once upon a time, prospective lenders used to carefully examine credit reports, weigh the pros and cons, contrast this with income and make a decision that was far more ‘organic’ than it is today.
In the 1990′s, Fair Issac made the process an entirely formulaic matter, which assigned values to various points of data that resulted in an overall “score”. the exact formula used to create this score remains a highly guarded secret, but it is know to make use of a variety of factors. The “score” in question is called a FICO and it has massive impact on your ability to borrow, be it credit cards, car loans or mortgages.
The FICO standard scale starts at 350 and goes to 850. So, you’re probably wondering- what exactly constitutes a ‘good’ credit score?
Here’s how the scores typically break down.
730+ – Excellent credit
700 – 729 – Good credit
670 – 699 – Average Credit
585 – 669 – Higher risk
Below 585 – Very High Risk
Well, starting at 730, you’re considered in the ‘excellent’ credit range. Here, you will receive the best interest rates for mortgages or loans, the lowest credit card fees and ultimately, will have access to more credit and borrowing power than people with a lesser score. If your score is above 730, don’t worry. You’ve ‘arrived’ in the credit world and at this point, you can’t really do any better. The functional difference between a 730 and a higher score is nominal, if not non existent.
If your score is in the 670 to 730, you will still be able to quality for credit lines, but you will pay a higher interest rate than those in the ‘prime’ credit range. Here, the actual score itself matters; the lower your score happens to be, the higher interest rate you will need to incur in order to borrow, so improvements in this range are worthwhile. For example, an increase as low as ten FICO points can save you thousands of dollars over the term of a 30 year mortgage.
If your score is below 670, you are in what’s called the ‘subprime’ range where you will pay the highest rates with the least access to credit lines- if credit lines are extended to you in the first place.
People with scores below 670 should promptly start rectifying this, as the interest rates and limited access to credit suffered at these levels can have a substantial impact on your ability to borrow and as such, your overall financial life.
Ron
The FICO standard scale ranges from 350 all the way to 850. So, you’re probably wondering- what exactly is considered a ‘good’ credit report score? In this article we will demystify credit ratings and discover what level you should aim for to increase your borrowing power.
Establishing what constitutes a “good” credit score is pretty easy; matter of fact, it’s a standard formula. Once upon a time, prospective lenders used to carefully examine credit reports, weigh the pros and cons, contrast this with income and make a decision that was far more ‘organic’ than it is today.
In the 1990′s, Fair Issac made the process an entirely formulaic matter, which assigned values to various points of data that resulted in an overall “score”. the exact formula used to create this score remains a highly guarded secret, but it is know to make use of a variety of factors. The “score” in question is called a FICO and it has massive impact on your ability to borrow, be it credit cards, car loans or mortgages.
The FICO standard scale starts at 350 and goes to 850. So, you’re probably wondering- what exactly constitutes a ‘good’ credit score?
Here’s how the scores typically break down.
730+ – Excellent credit
700 – 729 – Good credit
670 – 699 – Average Credit
585 – 669 – Higher risk
Below 585 – Very High Risk
Well, starting at 730, you’re considered in the ‘excellent’ credit range. Here, you will receive the best interest rates for mortgages or loans, the lowest credit card fees and ultimately, will have access to more credit and borrowing power than people with a lesser score. If your score is above 730, don’t worry. You’ve ‘arrived’ in the credit world and at this point, you can’t really do any better. The functional difference between a 730 and a higher score is nominal, if not non existent.
If your score is in the 670 to 730, you will still be able to quality for credit lines, but you will pay a higher interest rate than those in the ‘prime’ credit range. Here, the actual score itself matters; the lower your score happens to be, the higher interest rate you will need to incur in order to borrow, so improvements in this range are worthwhile. For example, an increase as low as ten FICO points can save you thousands of dollars over the term of a 30 year mortgage.
If your score is below 670, you are in what’s called the ‘subprime’ range where you will pay the highest rates with the least access to credit lines- if credit lines are extended to you in the first place.
People with scores below 670 should promptly start rectifying this, as the interest rates and limited access to credit suffered at these levels can have a substantial impact on your ability to borrow and as such, your overall financial life.
Ron
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June 26, 2010
Factors That Raise Credit Score Fast
Jack Harmon asked:
So you need to raise your credit score fast? Well credit scores are a very complicated mathematical formula, but if you understand how they are calculated and the factors that affect your score you stand a much better chance to raise your credit score fast.
First off you must understand that there are 3 credit reporting agencies (Experian, Transunion, Equifax) and each of them could have a different credit score for you.
Sometimes a credit score is referred to as a FICO score or beacon score so don’t be alarmed if you see different terms.
In addition, different credit reporting agencies can report more heavily in different regional areas. For instance, Experian could be more heavily reported for customer in the Western region while Equifax could report more heavily in the Southern region.
It is for the above reason that frequently why you will have a different credit score with different credit reporting agencies. If you want to raise your credit score fast here are some things to consider:
Raise Credit Score Fast With These Tips
1. Get a free copy of your credit report and check for errors: Every year 1000s of people find that a creditor or creditors have placed inaccurate information on their credit report. It could be anything from a late payment to a collection. These errors can significantly affect your credit score and getting errors removed can help you raise your credit score fast.
You should highly consider getting a free copy of your credit report and check it for errors. If you find errors, you need to contact the credit reporting bureau and explain to them that you would like to file a complaint as a result of an error on your credit report.
Checking your own credit will not hurt your credit score.
2. Payoff outstanding debt: If you have outstanding debt or credit card debt paying it off can help you improve your credit score. It is not recommended you close your credit cards, because the longer length you have held the credit card can actually help your score.
However, paying off the debt on your credit card can help tremendously because payment history is highly important to your credit score.
3. Avoid shopping for too many loans or credit cards: Every time you shop for a credit card or loan each application you submit can affect your credit score. This does not mean you can not shop for a loan, just do not get out of control with it. Also, if you do shop for a loan be sure to submit all applications within 14 days of each other as this will be more favorable to keeping your credit score high.
In the end, following the above tips can be highly helpful to raise your credit score fast. It is highly recommend you get a copy of your free credit report as any errors on your credit report can be the best option to raise your credit report fast.
Carlos
So you need to raise your credit score fast? Well credit scores are a very complicated mathematical formula, but if you understand how they are calculated and the factors that affect your score you stand a much better chance to raise your credit score fast.
First off you must understand that there are 3 credit reporting agencies (Experian, Transunion, Equifax) and each of them could have a different credit score for you.
Sometimes a credit score is referred to as a FICO score or beacon score so don’t be alarmed if you see different terms.
In addition, different credit reporting agencies can report more heavily in different regional areas. For instance, Experian could be more heavily reported for customer in the Western region while Equifax could report more heavily in the Southern region.
It is for the above reason that frequently why you will have a different credit score with different credit reporting agencies. If you want to raise your credit score fast here are some things to consider:
Raise Credit Score Fast With These Tips
1. Get a free copy of your credit report and check for errors: Every year 1000s of people find that a creditor or creditors have placed inaccurate information on their credit report. It could be anything from a late payment to a collection. These errors can significantly affect your credit score and getting errors removed can help you raise your credit score fast.
You should highly consider getting a free copy of your credit report and check it for errors. If you find errors, you need to contact the credit reporting bureau and explain to them that you would like to file a complaint as a result of an error on your credit report.
Checking your own credit will not hurt your credit score.
2. Payoff outstanding debt: If you have outstanding debt or credit card debt paying it off can help you improve your credit score. It is not recommended you close your credit cards, because the longer length you have held the credit card can actually help your score.
However, paying off the debt on your credit card can help tremendously because payment history is highly important to your credit score.
3. Avoid shopping for too many loans or credit cards: Every time you shop for a credit card or loan each application you submit can affect your credit score. This does not mean you can not shop for a loan, just do not get out of control with it. Also, if you do shop for a loan be sure to submit all applications within 14 days of each other as this will be more favorable to keeping your credit score high.
In the end, following the above tips can be highly helpful to raise your credit score fast. It is highly recommend you get a copy of your free credit report as any errors on your credit report can be the best option to raise your credit report fast.
Carlos
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Credit Cards Comparison – How to Compare Credit Card Offers
Morgan Hamilton asked:
If you are looking for a new card but aren’t exactly sure which one is right for you then you definitely want to conduct a credit card comparison in order to find the most suitable offer. There are many different cards on the market and it can become a bit overwhelming but it need not be.
A quality comparison website will allow you to drill down to specific categories. For instance, if you’re interested in low interest rate cards there should be a category devoted specifically to low APR offers. The same can be said for cash back cards, travel rewards cards, business credit cards and so on.
By accessing these categories you will automatically be able to see the different offers from the major issuers including American Express, Discover, Visa and MasterCard. This will make it very easy for you to do side-by-side comparisons of the features and benefits of each.
A truly high-quality website will also offer news, information and reviews. By accessing this type of information you will be much better prepared to make an informed decision. It is extremely important that you also identify what your specific needs are as a consumer.
Equally important is understanding exactly what the terms and conditions of the offers that you are interested in are before you apply. You are not only going to want to know about the good stuff like rewards programs and the like, but also you must understand the cost of actually owning a credit card.
The cost I refer to is composed of the interest rates, fees, grace periods, lines of credit, etc., etc. These are the things that are usually buried in fine print but nevertheless must be not only read but clearly understood.
Doing a credit card comparison on a reputable website is absolutely the smart way to shop for credit. By keeping the aforementioned advice in mind you will be well on your way to finding a card that is not only fiscally smart but will also serve you well for many, many years to come.
Clarence
If you are looking for a new card but aren’t exactly sure which one is right for you then you definitely want to conduct a credit card comparison in order to find the most suitable offer. There are many different cards on the market and it can become a bit overwhelming but it need not be.
A quality comparison website will allow you to drill down to specific categories. For instance, if you’re interested in low interest rate cards there should be a category devoted specifically to low APR offers. The same can be said for cash back cards, travel rewards cards, business credit cards and so on.
By accessing these categories you will automatically be able to see the different offers from the major issuers including American Express, Discover, Visa and MasterCard. This will make it very easy for you to do side-by-side comparisons of the features and benefits of each.
A truly high-quality website will also offer news, information and reviews. By accessing this type of information you will be much better prepared to make an informed decision. It is extremely important that you also identify what your specific needs are as a consumer.
Equally important is understanding exactly what the terms and conditions of the offers that you are interested in are before you apply. You are not only going to want to know about the good stuff like rewards programs and the like, but also you must understand the cost of actually owning a credit card.
The cost I refer to is composed of the interest rates, fees, grace periods, lines of credit, etc., etc. These are the things that are usually buried in fine print but nevertheless must be not only read but clearly understood.
Doing a credit card comparison on a reputable website is absolutely the smart way to shop for credit. By keeping the aforementioned advice in mind you will be well on your way to finding a card that is not only fiscally smart but will also serve you well for many, many years to come.
Clarence
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