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What does my FICO Score affect?
A better question would be, what doesn't it affect? The interest rates on house
payments, car payments, mortgages, loans, and more. With bad credit, it can be
virtually impossible to obtain an unsecured credit card as well, and anything
you may be approved for will generally have higher rates and/or lower limits.
Here's an example.
• What is my credit score based on?
- 35% - Record of both
timely and untimely payments.
- 30% - The amounts and
types of outstanding debt.
- 15% - The time since an
account has been opened.
- 10% - Number of recently
opened accounts, recent inquiries.
- 10% - Number and types of accounts, such as credit cards, retail, etc.
•What exactly is a FICO score?
Your FICO score is a number between about 300 and 850, it's based on the statistics of a person's credit report, to represent their "creditworthiness" (meaning, the likelihood that the consumer will pay off his or her debts). The information is cross-referenced from the three major credit reporting agencies, and analyzed by the FICO System to give it a simple, numerical score.
Lenders, such as banks and credit card companies, look at your FICO Score to evaluate the potential risk posed by lending you money. Using credit scores, lenders determine who qualifies for a loan, at what interest rate, and at how high of a credit limit.
• How does my credit score affect my cost of living?
When compared with the factors that go along with having a low FICO score, such as high interest rates, low credit limits, and overall difficulty getting approved for anything, it isn't a question of whether or not you can afford it. Read through this page, and then ask yourself how you can afford to go without it!
The law prohibits any company from guaranteeing the removal of items on your report, but we offer a free evaluation of your credit reports before you commit to our service, as well as a calculated refund if we cannot provide the desired results. Please take a look at our guarantee for more information.
Financial Market Advisors has expert staffs, which
has been challenging the credit reporting agencies on our clients' behalf for
over 16 years. Using a variety of lawyers, accountants, and other repair
specialists, Financial Market Advisors has practically redefined the words
"credit repair". We employ creative, personalized solutions, while
following all of the laws and regulations in regard to the credit reporting
industry.
It's always a good idea to know who you're working with. If you select a company that isn't very familiar with consumer laws and regulations, you could end up in a worse situation than when you started. And with the sensitivity of the information being processed, you should always be sure that those you select to handle it can be trusted. If you are unsure of an organization's methods it's always a good idea to verify the information with the source. We have provided some official publications below, which give an overview of how FICO scores work.
"Understanding Your FICO Score"
(by Fair Isaac & Co., who came up with the FICO score concept.)
