Expert Debt Management
Expert Debt Management
Understanding Your Credit Score
     Do you know what your FICO score is?  Many people hear that their FICO score is a three digit number but they don't really know what this means.  Your FICO score is a rating based on your credit score.  When your FICO score is determined there are many different pieces of information that are considered.  Some of the things that come together to create your FICO score include payment history, length of credit history, new credit, different types of credit used, and the amount that is still owed.  Several different factors are considered in reference to all of these things.  When you break each down and understand it for what it is, you will have a better understanding of your FICO score and how it came about.

Your Payment History
     When you hear that your payment history is considered you may not know exactly what this means.  There are many things that are considered in relation to your payment history including the payment information that is available on credit card accounts, retail store accounts, loans, mortgages, and other financing resources.  In addition, events such as bankruptcies, wage garnishments, and suits filed against you will be factored into the equation.  Lastly, your FICO score is based on how long your debts have been overdue.

Your Total Amount Due
     When your FICO score is being determined how much you owe will also be considered.  Many different things will be looked at including the amount that is owed on any specific accounts, how many accounts you currently owe on, and also the amount of credit that is owed on all of your credit lines.  This gives one a good picture of how well you are able and willing to pay off your current debts and your FICO score is a reflection of this.

Length of Your Credit History
     The length of your credit history is also important when determining your FICO score.  What will be looked at includes how long you have had your accounts and the amount of time there has been since the accounts were last active.  This is an important part of your FICO score because it shows not only how much credit you current have, but how active you are in purchasing as well as making payments.

Your New Credit
     Your new credit is also important when considering your FICO score.  There are a couple of different things that will be considered including how many new accounts you have as well as how many different credit inquiries you have made in the recent past.  This determining factor because it allows for a lender to see how much credit you have been applying for lately.

Types of Credit Used
     The type of credit that you have used is also considered when your FICO score is being figured.  Your FICO score is partly based on the type of credit accounts you have and how many of them you currently have open.  The credit types that are inquired about include mortgages, loans, credit cards, and department store accounts.

     When you put all of this information together you have your FICO score.  The greater your FICO score the easier you will find that it is to be approved for a loan or credit of any sort.  Your FICO score is used to help determine the risk on the part of the lender when loaning you any amount of money.

Understanding Your Credit Score

     There are some simple things that you should know about how the FICO scoring system is used.  First, if your FICO score is less than 600 you are usually considered to have bad credit.  If your score is between 620 and 659 you usually are considered to have good credit, 669 to 700 is considered very good, and 720 and above are considered excellent.  The better your credit score the your chances of being approved and also the better you're your interest rate will be.

Disclaimer: This site is not , nor should it be taken to be, legal, financial or other professional advice. It merely provides a generalized guidance and generalized information only. Consult a financial advisor or an attorney to discuss any legal or
financial issues involved with credit and debt decisions.
Copyright 2008-2024, DebtConsolidation-Credit.Com, All Rights Reserved.

      Debt Consolidation
      Debt Counseling
      Loans vs. Consolidation
      Problem with Debt
      Debt Settlement
      Consolidation Benefits
      Credit Counseling
      Loan Deferment
      Debt Loans
      Credit Card Debt
      Debt Loan Basics
      401k Plans
      About Liens
      Student Loans
      Avoiding Bankruptcy
      Bankruptcy Knowledge
      Frequently Asked Questions

      Budgeting Making
      Budgeting Maintaining
      Smart Management
      Money Thinking
      Debt Free Tips
      Simplify Your Finances
      Identifying Debt

      Secured Debt
      Unsecured Debt
      Good Vs Bad
      Consumer Debt
      Credit Card Debt

      Familiarizing Yourself
      Getting Your Report
      Your Rights
      Understanding It
      Understanding Part 2
      Credit Bureaus
      Raising Your Score
      Your Credit Past
      Fixing Inaccuracies
      Disputing Your Report
      Old Debts
      Closing Accounts
      Score Inquiries
      Consumers Beware
      Credit Scores
      Debt Credit Ratio

Start by filling in the following Debt Form for a Free No Obligation Debt Consolidation Quote