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What is a FICO score?
Well, even though you might not remember it, you've probably heard someone tell you yours was either good or bad. A FICO credit score is a numerical indicator of your expected financial responsibility. It's calculated by analyzing information from your credit history, and there is one FICO credit score from each credit reporting agency.
In addition to the specifics of your credit reports, the FICO credit score is the summary piece of information that most lenders look at. Normally, the higher your FICO credit score, the less your interest rate on a loan, whether it be an auto loan or a home loan. Establishing a high FICO credit score can save you thousands of dollars over the life of even a modest auto loan.
Click Here to get access to your FICO score now, and see what the lenders see!
How is my FICO credit score derived?
Your FICO credit score is derived from the consideration of your credit history and numerous factors such as:
- The amount of time your credit has been established
- Late payments to your creditors
- The amount of credit you have used versus the amount of credit available
- Length of time you have lived at your present residence
- Your employment history
- Negative credit information on you such as bankruptcies and collections.
How can I increase my FICO credit score?
It generally takes some time to improve your FICO credit score, but there are some concrete steps you can take, for instance:
- Pay your bills by the due date. Late payments and collections will negatively impact on your FICO credit score.
- Reduce your outstanding credit card balances. If you have used all your available credit on your credit cards, you will be penalized on your FICO credit score.
- If you have never applied for credit or have limited credit, your FICO credit score will suffer. Not having enough credit makes you an unknown quantity and hurts your score.
- Do not make frequent applications for credit. If you have a large number of inquiries on your credit report, your FICO credit score may suffer as well.
How do I get my FICO credit score?
Click Here to get access to your FICO credit score now, and see what the lenders see!
What if my FICO score is not as high as it should be because of an error?
In reality, you have three FICO scores. Each is derived from data provided by each of the three bureaus--Experian, Trans Union and Equifax. Some lenders use one of the three scores and other lenders use the middle score or an average score.
If your FICO credit score is too low because of an error in your credit report(s), you have the right under law to challenge inaccuracies on your credit report. To order copies of your credit report, click here to get your 3 in 1 credit report. If you need help in challenging wrongful items on your credit report, we suggest CreditMD.com for comprehensive help in clearing your credit.
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