Posted on
March 21, 2009
at
4:39 pm
And what score is good and what is bad?
Posted on
May 6, 2009
at
9:27 am
I believe what you are referring to is your "credit score" which is typically calculated using the Fair, Isaac and Company (FICO) rating sysytem. A person's FICO score is made up of 5 different components: Payment History: 35%. This portion of your FICO score will increase if you make all of your monthly payments on time. If you miss a payment, it will have a negative effect on your payment history. Debt to Income Ratio (Amounts Owed): 30%. This portion of your FICO score will increase if you have little or no debt and have a steady stream of income. If, on the otherhand, your debt amount heavily outweighs the amount of income you bring in, then this portion of the FICO score will surely suffer. Length of Credit: 15%. In simple terms, the longer your credit history is, the higher this portion of your FICO score will be. New Credit: 10%. This portion of your FICO score is effected by the new types of credit you are taking on. If, for example, you took out a line of credit or credit card 4 years ago but have not opened up any new credit since then, this portion of your score will suffer. Types of Credit: 10%. It is better to have different types of credit as opposed to one type of credit. For example, this portion of your FICO score will be strong if you have two credit cards, a personal loan, a mortgage and a car note as opposed to having just 5 credit cards. In terms of what constitutes a "good score" from a "bad score", it is generally understood that anything above 680-700 is good, while anything under 580 is bad. Any score in between those two figures is considered to be "fair." Keep in mind, the FICO rating system is a range between 300-850. Have a good day everyone!
Posted on
May 28, 2009
at
12:12 pm
QBama is given you some very important information. Perhaps visitng the FICO website may also be helpful.
www.fico.com There are forums on that website that A LOT of people could help you answer. Good luck, ~Cynthia~
Posted on
June 1, 2009
at
11:35 pm
Lenders do not exactly use a generic score to base their decisions on. In other words, there isn't an "across-the-board" score that they follow.
Posted on
June 16, 2009
at
4:19 pm
No, but the FICO score is the most used credit score in the entire world, and they are available through all 3 major credit bureaus her in the United States. Those would be Experian, TransUnion and Equifax. So really if you live in the US and want to know what lenders tend to rely on for credit scores it is in fact the FICO score.
Posted on
July 20, 2009
at
11:46 am
Ok so I know what is a credit card score after reading this stuff. But my credit card score is in the dumps and I can't get approved for a credit card anywhere- any suggestions on how I can rebuild my credit card score?
Posted on
July 20, 2009
at
1:39 pm
One way to rebuild your credit card score is to take out a gas card and/or a department store card if you can't get approved for a credit card. These are very easy to access and they will be reported to the bureaus so it is a good place to start. And of course, if you really want to build up your credit card score (FICO), make sure you don't miss any monthly payments! Your payment history is the biggest factor.
