You need to know your FICO score
It is important to know that your FICO measures your creditworthiness. Underwriters have determined that people with low FICO scores default on loans with far greater frequency than do their higher scoring peers.
The three credit bureaus used are: Equifax, Experian, and Transunion
Ten things to know
1. Delinquencies: A 30-day late payment is less risky than a 90-day late payment.
2. New credit: Your score drops when you open several credit accounts in a short period, as you may be unable to meet new credit obligations.
3. A long credit history is better than a newly established one.
4. A consumer with “maxed out” cards may have trouble with payments.
5. Public records: Tax liens and bankruptcies jeopardize a healthy FICO score.
6. The use of consumer credit counseling agencies may lower scores.
7. Small balances, no late payments show responsibility.
8. Too few revolving accounts: If you fail to use credit, there is no way to evaluate your ability to manage it.
9. Too many revolving accounts may mean overextension.
10. Credit scores affect interest rates. Some lenders establish lower interest for high FICO scores and vice versa.
Call me Beverly with any questions: 732-991-1317