Understanding Your FICO Score
Considering how critical one’s FICO score is to modern day life, it’s surprising how little people know about what actually makes up this all-important number. We will describe some of these facts in the passages that follow.
First off, FICO scoring ranges from 300 to 850. The higher the score the better your credit worthiness is considered to be by potential lenders. While it is not totally uncommon for consumers to score above 800 it is extremely unlikely someone would have a score in the 300’s. A score in the 500’s is thought to be to be very poor, most often indicating a bankruptcy or other very serious credit missteps.
There are five components to the FICO score:
Payment history, making up 35% of the score
Amount owed, 30%
Length of credit history, 15%
New Credit, 10%
Types of credit used, 10%
What does not factor into your score:
Private information having nothing to do with actual payment history such as race, religion, sex, marital status, age, salary, location of primary residence, child and/or family support or rental payments.
There are actually 3 FICO scores, one for each of the reporting agencies: Experian, Equifax and Trans Union. These scores will vary, although not very much, depending on what information each of the bureaus have on you.
Creditors depend on your FICO scores in judging whether or not to offer credit, the amount to lend, the rate of interest to charge, and the terms of repayment. At the end of the day high FICO score will mean a big savings for the borrower over the life of the loan depending on the loan and terms.
Lets take a look at an example: Person A has a FICO score of 760 and Person B has a score of 640. Each one applies for a mortgage loan of $250,000. Person A will qualify for a loan and an interest rate of 6.36% and a monthly payment of $1,680. Person B would qualify for a loan with an interest rate of 7.95% and a monthly payment of $1,971. Thats a difference of $3,495 per year.
Technorati: credit repair, credit rebuilding, credit bureaus, credit score, fico, equifax, experian, trans union
Decide on Success
You have the power to shape your own future. Where do you want to go? What do you want to achieve? What would you like your life to look like one year from now? Or five years from now? If you really decide on success there is nothing that can stop you from achieving your goals.
Write Down Your Goals
One of the most powerful secrets of success is a clear written statement of your personal goals. Writing down your goals will solidify them in your mind. As your goals become part of your daily awareness you will naturally begin to make productive decisions that will lead you towards success. This is the power of the sub-conscious. Take some time everyday to consider the direction that you want your life to take and you will find yourself moving in that direction. When considering your personal goals you should think about every aspect of your life; financial, business, health and fitness, and personal relationships. You will be amazed at the results. The more specific you can be in picturing your goals, the more information you give your sub-conscious to work with.
The Power of Good Credit
Your credit report can have a profound effect on your financial freedom. Whatever your personal goals are, chances are good that your credit report will determine the availability and quality of the financing that can contribute to your success. Don’t worry about credit issues of the past. Start from where you are. I guarantee that with the right effort you can have the type of credit that you deserve. Credit repair may be the perfect first step in preparing yourself for a successful future.
Your Credit is a Tool
It is natural as you move towards your goals in life that you feel the need to make yourself as effective and efficient as possible. Your credit report should be as good as it can possibly be. Your credit is a tool that can give you the access and respect that you need in order to achieve your dreams. If you make an informed and focused credit repair effort there will be nothing that can stop you from having the kind of credit report that you want.
The Secret of Credit Repair
Credit repair, to be truly successful, requires a complete understanding of everything that contributes towards your credit scores. It also requires a patient and thorough look at every single bit of data on each of your reports. The most effective credit repair professionals will treat every line on your report with equal attention. You would do yourself a grave disservice by looking only at the derogatory items.
The Power of Specialization
It is true that you can do your own credit repair. It is also true that you can make your own clothes. I have been helping people with credit repair since 1989. I think that the analogy is reasonable. It takes a lot of experience to make a decent looking outfit. I’m sure that if I were to attempt to make my own clothes that the result would be pretty sad looking. Besides, I have other things to do with my time. Did you know that our entire economy is built on the benefits of specialization? Personally, I care enough about my appearance to let an expert make my clothes for me. How important is your credit to you? Do you want to learn the entire credit repair trade from the ground up? What is the best use of your time?
A New Energy
Credit repair can be an important ingredient in moving your life to the next level. You will experience a new found confidence that comes from knowing that your life is in order and you are moving in the right direction. That feeling of empowerment will contribute greatly to your ability to achieve all of your goals. There is nothing like the energy that you will experience when you know that you are moving in the right direction.
Keep Up the Momentum
Review your goals everyday. Don’t let a day go by without considering the direction that you have chosen for your life. Think about what you really want and you will discover that all of the tools and ideas that you need for success will come to you. Pay attention to those inspired ideas and take action on them. Soon you will discover that everything that you have visualized for yourself has materialized. Are you ready? Take that first step right now and nothing can stop you.
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