Guide To Everything You Need

To Know About Your FICA Score

I came to a realization that people and especially Americans cannot do without credit. I didn’t just think of this on my own, though.

Statistics have it that:

1) There are 1.3 billion payment cards in circulation in the United States of America alone! Statisticians conducted a research survey and discovered that the average American family has a total of 13 payment cards ranging from store cards, credit cards, gas cards, debit cards, etc.

2) A staggering 96 percent of Americans retire being fully or partly dependent on other family members, the government or charity organizations.

3) $5,800 on average is carried by Americans on credit card debt – month to month.

These are real statistics that show how much we depend on credit as well as a good credit score to acquire so many things in life ranging from a house, a car, student loans and other necessities.

Your 3-digit FICA credit score can determine what you can get and how much it will cost. Lenders and creditors just assess your credit score, which is calculated on your history of creditworthiness and obtain accurate information on whether you as a lender would be able to repay a loan on time or not.

It’s essentially the personal equivalent of your business Paydex score.

There are several things that you can implement in order to improve your credit score from an all time low to a high.

Here is what you can possibly do:

1) Use your cards lightly

Avoid stacking up your balances on your credit cards whether you end up paying off the bill at the end or not. You can up your credit score by limiting charges to your credit card not to exceed 70% of your card limit. To limit your charges you may track your charges by frequently assessing account with your card issuer.

2) Pay your credit card bills

Although paying your installment loans like mortgage, car loans, etc. on time has a positive effect on your credit score; what is considered more is your ability to pay off or service revolving loans like store and credit cards. A good technique is actually paying off your credit cards, which are closer to their limits and working your way down.

3) Check your limits

As much as possible avoid maxing out your card to the limit. If you have a monthly charge to that card that causes it to max out, get a card with a greater limit since that can lower your score when the formula is used.

4) Acquire Goodwill

‘Good customers’ can easily get goodwill from the card issuer. Good will is a request to the issuer to erase a record of delinquency or delayed payment, which may stain the credit score when the formula is applied.

These are just some of the tips for making your credit score better but they are not limited to only these.

There are other ways and you may discuss the most suitable options for your needs with your financial consultant on the possible ways that there are to dealing with credit scores.

We thank Yan for this contribution and you can see the original article at Qondio.