Understand your Credit Score
Credit Repair in Columbia SC will help you understand your credit score. Lenders will review your creditworthiness based on your credit score. A credit score is a number that lets a lender know how the likelihood of your repaying the loan, and whether you will make them on time. Understanding your score is important if you wish to get buy a home, car, or take out a loan. Your FICO score ranges from 300 to 850. A good credit score is necessary for you to experience some type of financial freedom. The lower your score the harder it is to get what you want.
Credit Score Factors
There are specific things that will affect your credit score and they are known as credit score factors. Here are some of the factors that affect your score:
These factors will identify what affected your score at the time that it was calculated. They will also let you know what you should address to improve your creditworthiness. This is why it is a good idea to carefully monitor your credit and keep an eye on the factors that we’ve mentioned. Monitoring your credit lets you see your efforts to improve it are paying off.
FICO Score
You may notice that your credit report shows a FICO score. This is a scoring model that is used to determine your overall credit. It is a mathematical equation that evaluates data in your credit report. This information is then compared with a database of previous credit reports and the final score is your creditworthiness or credit risk. There are several types of credit scores, however, the most commonly used scoring method is the FICO (Fair Isaac Company) score.
What Makes Up Your Credit Score
The FICO system uses five categories when calculating your credit score:
1. Payment History – 35% of your credit score
2. Amounts Owed – 30% of your credit score
3. Length of Credit – 15% of your credit score
4. New Credit – 10% of your credit score
5. A mix of Credit Types – 10% of your credit score
All of these factors contribute to your overall credit score. They are all important but as you can see, some things are more important than others, such as paying your creditors on time and keeping your credit amount to a minimum.
Hire Credit Repair Columbia SC
At Credit Repair Columbia SC, we want you to understand your credit and that is why we encourage you to contact us to discuss your current situation. Your credit may not be as bad as you think it is. If it is, it still isn’t the end of the world because there are some proven effective methods for improving your credit score, which we are keenly aware of. Allow us to work with you to understand your credit better so that you can use credit responsibly and enjoy some level of financial freedom. Call us today!
Credit Score Factors
There are specific things that will affect your credit score and they are known as credit score factors. Here are some of the factors that affect your score:
- Types of accounts
- Total debt
- Age of accounts
- Number of late payments
These factors will identify what affected your score at the time that it was calculated. They will also let you know what you should address to improve your creditworthiness. This is why it is a good idea to carefully monitor your credit and keep an eye on the factors that we’ve mentioned. Monitoring your credit lets you see your efforts to improve it are paying off.
FICO Score
You may notice that your credit report shows a FICO score. This is a scoring model that is used to determine your overall credit. It is a mathematical equation that evaluates data in your credit report. This information is then compared with a database of previous credit reports and the final score is your creditworthiness or credit risk. There are several types of credit scores, however, the most commonly used scoring method is the FICO (Fair Isaac Company) score.
What Makes Up Your Credit Score
The FICO system uses five categories when calculating your credit score:
1. Payment History – 35% of your credit score
2. Amounts Owed – 30% of your credit score
3. Length of Credit – 15% of your credit score
4. New Credit – 10% of your credit score
5. A mix of Credit Types – 10% of your credit score
All of these factors contribute to your overall credit score. They are all important but as you can see, some things are more important than others, such as paying your creditors on time and keeping your credit amount to a minimum.
Hire Credit Repair Columbia SC
At Credit Repair Columbia SC, we want you to understand your credit and that is why we encourage you to contact us to discuss your current situation. Your credit may not be as bad as you think it is. If it is, it still isn’t the end of the world because there are some proven effective methods for improving your credit score, which we are keenly aware of. Allow us to work with you to understand your credit better so that you can use credit responsibly and enjoy some level of financial freedom. Call us today!
Contact Credit Repair Columbia SC at 803-266-1101 for free estimates.