You Can Raise Your FICO Score

FICO — The three primary credit agencies/bureaus, Experian, Equifax, and TransUnion have a formula to evaluate an individual’s credit worthiness by arriving at and assigning a number to your credit file. They do not give out the exact formula but do provide a lot of information on how they arrive at your (FICO) score. The score can influence many things in your life depending on whether you have a low, medium, or high score. The primary use is obvious, if you need to borrow money to buy a car, house, or pay your tuition for the next college session, you will need a respectable credit score. Uses that are not so obvious are:

  • If you are applying for a job, your potential employer may check your credit score. Some feel it tells them how live score responsible you are about obligations.
  • If you apply for car or any other type of insurance. Insurance companies think it is an indication of the risk of writing a policy for you. It can also of course tell them if you will pay your bill or not should they let you pay it over time.
  • If you need to rent a home or apartment your new landlord will in all probability check out your credit score along with your references to assure them you will pay the rent on time.
  • If you are looking for a new mate or love in your life and put yourself on the market with one or more dating/mating services, it’s more likely than not that eventually a potential mate will have your credit score checked. Sounds cold and calculating, but with Internet resources as available as they are, let’s face it, you are going to get checked out.

So you can see that a good credit (FICO) score is important in today’s world. Credit scores range from 300 to 850 and your number is somewhere in between. The minimum score most home lenders require today is 620, but for the best loan interest rate and term you will need one in excess of 720. The higher the better is the rule. Now if you have a FICO score below 620, you don’t have to fold up your tent and silently steal away in the night, you can do something about it.

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