| Understanding how a credit score is figured is | | | | a local credit union or bank, they may be able to take |
| necessary if I wanted to bump my credit score. In the | | | | into account medical bills due to an accident or other |
| late 1950's a company called Fair Isaac thought up a | | | | extenuating circumstances. Talk with them and explain |
| formula for rating consumers' ability and potential to | | | | situations. Get them additional documentation and be |
| properly handle credit. This formula calculates what we | | | | upfront and honest with them. They could still approve |
| know as a credit rating or credit score. The three digit | | | | you even with low credit scores. Your credit score is a |
| number gives potential creditors and lenders a pretty | | | | direct reflection on you, so monitor it and make sure it's |
| accurate idea whether you are a good credit risk or a | | | | accurate. I found the best way to bump my credit |
| bad one. A credit score or rating will determine if you | | | | score is to keep my eye on it. Finding errors and |
| can get a loan or line of credit and what your interest | | | | simple mistakes will let me bump my credit score |
| rate will be. | | | | when I see it start to dip. |
| The credit rating shows everything you've done in your | | | | The best way to keep your score and rating as high |
| life as pertaining to credit and how you pay your bills. | | | | as possible is to pay your bills on time, keep your debt |
| The Fair Isaac Company (FICO) pulls all this information | | | | at 30% or less of your available credit and only buy |
| together and puts it into a huge mathematical algorithm | | | | those things you absolutely need, but can't pay for with |
| which then spits out your credit score. FICO keeps the | | | | cash. I check my score at least twice a year. If I ever |
| algorithm secret and copyrighted so they can charge | | | | apply for credit I'll check my report again, just to keep |
| for it. They apply this formula to the information given | | | | an eye out for simple errors. |
| them by the three major credit bureaus and give back | | | | It can be tough to realize that your whole financial |
| the credit score, for a price. | | | | background can be summed up in a three digit number. |
| Today Americans average a credit score of 676. The | | | | The truth is, though, in the world of credit the scores |
| scale is anywhere between 350 and about 900, | | | | determine who gets the credit. I found that a 675 |
| depending on who you ask. The higher the better and | | | | score would qualify me for a home loan, car loan, |
| you have a better chance to get credit and pay lower | | | | credit card or signature loan. If I could bump my credit |
| interest rates. There are a lot of people below | | | | score above that I saw interest rates on my loans go |
| average and once you get to the lower 600's you're | | | | down. It cost me less to borrow the money if I had a |
| what is called a credit risk. Creditors and lenders aren't | | | | higher score. |
| going to take a chance on you, unless they can | | | | For free insider tips on what methods I used to bump |
| charge high interest rates and have a lot of collateral. | | | | my credit score check out my website. |
| If you have a personal relationship with a lender like at | | | | |