Anatomy of a Credit Score

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Anatomy of a Credit Score

As we’ve mentioned, the exact math equation that creates a credit score is unknown, but we do know that it is based on the information in your credit report, which is then compared to millions of other people’s information.

THE FICO RANGES:

760-900   Best

700-759

660-699

620-659

580-619

300-579   Worst

The median FICO score is 720 out of a possible 900. The riskiest customers have scores below 600. Higher scores are better and translate to lower interest rates.

Ways to improve your credit score:

Consolidating debt, like using your line of credit to pay off credit cards is one way to improve your credit score if you have debt in multiple areas. Another way to improve your score is by building up your responsible use of credit. In fact, 78% of borrowers see their FICO score increase 3 months after getting a loan. On average, this increase is 23 points!

 

 

Source- ggrfinance.com

2017-04-13T15:42:13+00:00

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