Lenders will like to know your FICO or VANTAGE credit score if you are applying for a loan. To a great extent, this will determine whether you will be given the loan or not. You will be given the loan if you see that you are eligible. Thus, you will be doing a great disservice to yourself by disregarding the FICO score. This means that you must pay all your bills as and when due. If your life revolves around paying your bills on time, then you will surely have a higher FICO score. If your FICO score is high, it means that there are higher possibilities of acquiring credit cards, loans and so on. This also means that once lenders offer you some money or credit transaction, you will not waste time in paying them off. There are several ranges for FICO score; if your score is within 500 to 559, then you must begin to improve on them. You will have some issues acquiring loans if your score is between 560 to 619. If you wish to have a good score, then you need to start thinking of increasing your score to 675 to 699. You are said to be in excellent level when your score is within 720 to 850. If you are at this point, you wouldn’t have issue applying for a loan or mortgage. The following are the five categories of FICO/VANTAGE3 score:
- Your payment history
- Your length of credit history
- New credit
- Amounts owned
- The type of credit you have used.
Useful tips on raising Your Credit Score
Are you interested in raising your credit score? It is a good thing to do. Have you wondered why many lenders or creditors want to know certain information about you? This will help them in knowing the status of your credit score. If you don’t have a good credit history, the financial institutions will be hesitant in offering you loan. Here are some tips from Credit Score Wiz ™ that will help you out.
So, if you intend collecting a loan from an insurance or financial institution, you must have a good credit history. All the information on your credit report is maintained ad collected by the credit firm, and their aim is to sell this information to any one that might need it. Among them are information that may inspire decisions made by insurance companies, financial institutions, employees, and creditors. Your credit report also contain some vital information regarding of any legitimate action taken by you, or against you; whether you have been filed or arrested for bankruptcy as well as your payment of debt. Try as much as you can not to have a credit risk, because doing so can not only heighten your interest rate, but will also lead to the declining of your insurance and loan applications.