Whether you are looking to open a credit card, finance a car or buy a home...you've probably noticed that your credit score is important. A credit score is essentially used to assess how likely it is that a borrower will repay a loan. The score measures the relative degree of risk that a potential person represents to a lender or investor and is based on several areas of information (however, because of several laws against discrimination - it is not based on gender, race age or zip code.)
Credit Bureaus & Score RangeFair, Isaac Credit Bureau scores range between 300 to 850 points - the higher the score, the less risk associated with the borrower. Below are the three national credit data repositories that contribute to your score:
Each of these bureaus may offer you a slightly different credit score depending on the data within their own credit profile. Keep in mind that a score is based on all credit-related data - not just negative data.
With our Ways 2 Save Budget Worksheet, you can easily manage your budget with our free month-by-month plan. Grab your free copy »Areas that play key roles in your credit score include:Payment History (35% of score calculation)
Outstanding Debt (30% of score calculation)
Credit History (15% of score calculation)
Pursuit of New Credit (10% of score calculation)
Types of Credit (10% of score calculation)
Remember that Fair, Isaac Corp. (FICO) does not use race, color, religion, national origin, sex, marital status or age as predictive characteristics when calculating a credit score. Occupation and length of time in present residence are not included as well. Any other information that is not present in a repository credit file is not included in the calculation.It is important that you regularly monitor your credit score by requesting a credit report from each of the bureaus at least once a year.
Also keep in mind that "FICO" scores commonly shown on monthly credit card statements are not the "same" scores used for auto or mortgage financing. Talk to your credit professional to learn more about your credit profile and how it can help you qualify for financing. If you have a mortgage AND a car loan, student loan or credit card debt - you can reduce your monthly costs with a SmartREFi™Midwest Equity Mortgage, LLC on Google+
All information provided in this publication is for informational and educational purposes only, and in no way, is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Midwest Equity Mortgage, LLC does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Midwest Equity Mortgage, LLC do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.