Surprise surprise! my FICO score reached an all time high this month. I am now at 813. It’s so satisfying that our personal finance habits, habit of handling credit responsibly has paid off. I have posted a number of articles on improving credit score. Today I’ll write about my credit score, how it reached 813, the factors that went in my favor, also the ones that’ll have to be improved further. Let’s first start with what’s on FICO.
My FICO Credit Score report
Congratulations – You have an exceptional FICO® Score. The below factor(s) are informative but not significant as they represent very marginal areas where your score was adversely affected. Keep up your good financial habits!Key Factor(s) affecting your FICO® Score:
- Too many inquiries last 12 months – Each time you apply for credit a credit inquiry is added to your credit report. People who are actively seeking credit pose more of a risk to lenders than those who are not. Your FICO® Score was lowered due to the number of credit inquiries within the last 12 months.
- Length of time accounts have been established – People who do not frequently open new accounts and have longer credit histories generally pose less risk to lenders. In your case, the age of your oldest revolving account and/or the average age of your accounts is relatively low.
There are many reasons that people fall into debt. It could be a job loss, a sudden illness or the mishandling of money. Unfortunately, once you get overwhelmed with your debt it can become difficult to make your monthly payments on time.
What usually follows are a few late payments and then a few missed payments. This can present quite a challenge to restore your good name. The potential cost of having bad credit can be huge unless you follow these steps to recover from bad credit.
The thing about life is that it can be unpredictable. With the drop of a hat your car or house could need a major repair and at the time you might just not have the money for the repair costs. Of course, you always have the option of getting a loan, but what if you have bad credit?
Bad credit follows you around like a bad smell and you know all too well that it makes getting a loan extremely tough. Every lender considers you a high risk, just because you made a few mistakes in the past. Even, if you are able to get a loan you will end up digging yourself deeper in debt, trying to pay it back due to the high-interest rates.
This is a guest post from one of the readers, who wants to be anonymous.
Having a good credit score wasn’t always on the top of my priority list when I was in my early 20s. I never had an immaculate score, but it also wasn’t too shabby. I could have access to almost any type of financing: credit cards, car loans, and even a mortgage. I always paid my bills on time but I typically carried over some of the balance to the next month.
When you first anticipate the reality of wanting to become a homeowner, it will also be the time when you get serious about where your credit card stands.
Consumers that tend to pre-plan for all things financial should recognize the importance of getting the financial house in order, including attention to their credit scores. However, that is not always the case with perspective homeowners and as a result they end up losing thousands or hundreds of thousands of dollars over the lifetime of a loan.
Importance of Advanced Planning For those who are not advanced planners, getting approved for a mortgage may prove more difficult than initially thought. Mortgage lenders in today’s economy expect a lot more from borrowers than they have in the past decade. Lending requirements are much stricter and borrowers will need to be prepared to meet these expectations.
Your credit score is of utmost importance when you plan to apply for a business loan. Knowing how to improve will help you succeed in your application.
In the business world, the term credit score is just a common word to hear. What is a credit score then?
This is actually an expression, a numeric expression to be particular that evaluates the credit history and performance of a particular person or business. It is typically found and accessed in different credit bureau. It is in fact considered as a confidential file.
My view has always been to avoid credit repair agencies and start on your own. It is just the last option for you, to me. You can consolidate your debt and arrange for payoff assistance from your lender. you don’t really need help of experts. you just need to learn some tricks and you must be aware of some law. All information is available over the internet.
I am going to list the top 5 credit repair agencies you can reach out to when you think you do need experts’ help. Be careful and read the reviews about the company you elect to go with. be sure to ask all relevant questions and instruct them to keep you informed on every steps that they’ll take on your behalf with your creditors.
Knowing your credit score is very important as it greatly affects your financial ability, but for some reason no regulation exists that gives you the right to know it for free. Your credit score affects the interest rate you get when applying for a loan or even affect your eligibility for one. It also affects your fees why applying for financial services such as credit cards. Even your housing association, where you rent or your employer might want to verify your credit report and credit score. For Americans, having a good credit score makes things less costlier and more attainable.
Your credit report, which contains a lot of information about you and your financial whereabouts and it even required to calculate your credit score, is available for free according to the Fair Credit Reporting Act which allows you to order a credit report once per year from all 3 of the nation’s credit reporting companies (TransUnion Experian and Equifax). Each company uses a different method of calculating your credit score and each compiles its own credit report.
Welcome to the world of young adult finances, readers! After yesterday’s post on the need of retirement planning in early 20’s , this is an excellent followup post. Here I’ll do less talking and let the infographic speak about what I wanted to say.
Early 20’s or late 20’s whenever you join in to work force is the best time to start financial planning. The other day I was talking to an intern in our office. He’s just out of college. To him the life’s all about spending money, partying, seeing places. I tried convincing him and he seemed interested to know more. I didn’t tell him about my blog but we planed to meet again for next round of talk.
Perhaps I got my first mentee whom I can teach about best practices of personal finance. He’s one of the typical generation X population. Years ahead of them before retirement, they don’t care. perhaps we were like the same when we were in our 20’s.
Previously I wrote multiple articles on credit score, including How to improve credit score. This guest post from Joshua may force you to think about credit scores from a different perspective. Enjoy the post!
Hey everyone, I’m Joshua Rodriguez…you may remember me from my debut post a month or so ago. Today, is my 3rd post here and going strong!!! I love the comments you all leave so, please keep them up.