A credit score is intended to be a snapshot or summary of your credit history. It is produced with a computer model created most often by Fair, Isaac & Co. (or FICO) leading to the somewhat generic term “FICO score”. A low score can mean you won’t get a credit card or loan or that, […]

While we don’t know exactly how a credit score is determined, we do know that the following items are always considered important: Payment History (35%) Your score is negatively affected if you have paid bills late, had an account sent to collection or declared bankruptcy. If you charge up that already outstanding card, they figure […]

Credit scores range from 400 to 900, with the average around 700. According to the model, as your score increases, your risk of default decreases. Industry experience shows a direct correlation between low scores and high default rates. This means that you may have a hard time convincing a creditor to make you an affordable […]

Each consumer should check his or her credit report and make sure it is correct. It makes sense to check it about once a year or three to four months prior to the time you know you’ll be applying for a major loan, which will give you time to clean it up. With recent changes, […]

What should you do if you find mistakes in your credit report? As you read through your report, make a list of everything out-of-date. These may include such things as lawsuits, paid tax liens, accounts sent out for collection, criminal records, late payments and any other adverse information older than seven years. Credit bureaus often […]