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Understanding Your Credit Score
Understanding Your Credit Score
Understanding Your Credit Score
Understanding Your Credit Score
Understanding Your Credit Score
Understanding Your Credit Score
Understanding Your Credit Score
Understanding Your Credit Score
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Understanding Your Credit Score

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If you don’t understand your credit score then you should know that you are not alone. In fact, it is estimated that 70 percent of people in the United States do not even know that a credit score …

If you don’t understand your credit score then you should know that you are not alone. In fact, it is estimated that 70 percent of people in the United States do not even know that a credit score exist. This is unfortunate because the credit score is important.

For more information on how to improve your credit score please visit http://creditscorefox.com.

Published in: Economy & Finance, Business
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  • 1. Understanding Your Credit Score Brought to you by: www.creditscorefox.com
  • 2. Understanding Your Credit Score www.creditscorefox.com If you don’t understand your credit score then you should know that you are not alone. In fact, it is estimated that 70 percent of people in the United States do not even know that a credit score exist. This is unfortunate because the credit score is important. It could mean the difference between being approved or denied of a car loan or a home mortgage. Understanding your credit score is not at all difficult. If you will be patient with this article and read it until the very end, you would already have a basic understanding of your credit score.
  • 3. Understanding Your Credit Score www.creditscorefox.com Credit score defined The credit score is actually a three digit number that can range from 300 to 850. The higher your score, the greater chance you have of being approved of a loan or a credit card and of having to pay a low interest rate. This is because a high score is given to individuals who have shown great responsibility in paying off bills and other financial obligations in the past. Lenders usually just look at the credit score instead of digging up a person’s credit report because it is much easier and more convenient to do so.
  • 4. Understanding Your Credit Score www.creditscorefox.com What’s a FICO score? FICO score is actually just another name for the credit score. FICO stands for Fair Isaac & Company. It is the name of the company that developed the credit score. So when somebody is talking about the FICO score he or she is actually referring to the credit score. What’s a good/bad score? If you have a score above 700 then you should congratulate yourself for having a good score.
  • 5. Understanding Your Credit Score www.creditscorefox.com If you have a score of 720 and above then you can just sit back and relax and continue what you are doing to maintain your score. If you have a score lower than 700, then that means you have work to do and you need to raise your credit score. No matter how low your score is, you can always do something about it so you don’t have to feel desperate. What makes up your credit score? You credit score is made up of different components. Thirty-five percent of it comes from your payment history.
  • 6. Understanding Your Credit Score www.creditscorefox.com This is the reason why it is so important that you pay your bills on time and that you don’t miss any payment deadlines. Thirty percent of your credit score comes from amount owed. This refers to the amount you owe in relation to your credit limit. Having a gap between the two is important. Fifteen percent of the score comes from the length of credit history. The score takes in your oldest account and the average age of your other accounts. Ten percent is from new credit. This is why you should not open several credits accounts at the same time.
  • 7. Understanding Your Credit Score www.creditscorefox.com The final 10% comes from credit in use. This refers to the different kinds of credit you have. Now that you have a better understanding of your credit score, may you have a better appreciation of the need to have a high score? Go here http://creditscorefox.com/2013/02/24/understanding- your-credit-score/ to learn more why understanding your credit score is important.
  • 8. Understanding Your Credit Score Brought to you by: www.creditscorefox.com

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