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Why Credit Matters1/5/2019 Why Credit Matters
Credit can affect everything from home loans, auto loans, rental agreements, insurance, social status, and even employment. Bad credit means higher rates on just about everything related to borrowing money. Creating a plan to try to improve you credit will help save you money. There are five factors in determining your credit score: FICO Credit Score Breakdown 35% – Payment History 30% – Amount Owed 15% – Length of Credit History 10% – Types of Credit 10% – New Credit FICO® scores range from 350-850, where 350 being the lowest credit score and 850 being the highest. The higher your score, the less risk assumed by the lender. Ideally, you want your score to be above 680, or else you are looking at paying higher rates on your loans, if you even are approved at all. 350-579 – Poor 580-619 – Below Average 620-659 – Average 660-719 – Good 720-850 – Excellent
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