How to Keep a Credit Score High
News from Morningstar.com:

Answer: Your credit score serves as a key determinant of the costs of some of the most important and substantial purchases you’ll make–like buying a home or car–as well as the interest rates that accompany your credit cards. Damaged credit can affect how much you pay for services such asĀ insurance, and some employers even look to credit histories before extending job offers.

FICO scores (named after Fair Isaac Corporation–the company that developed the methods for calculating the scores) are the most commonly used scores by lenders as they attempt to gauge a borrower’s risk and reliability.

Your FICO score actually comprises three scores–one from each of the credit bureaus–TransUnion, Equifax, and Experian. Each score from the individual agencies runs from 300 to 850 points–the higher your score, the lower the risk.

What exactly goes into FICO scores isn’t exactly transparent: The bureaus take into account your payment history, of course, …………… continues on Morningstar.com
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