Get your credit scores improve is very important for your lifestyle!
But how? That is very good question!
After years of delays, the credit industry finally agreed to give
consumers access to their personal "credit scores." This is important, because lenders use credit scores to determine who to give credit to and at what rates.
Knowing your credit score can be empowering-if it's low you can take steps to improve your credit worthiness and if it's high you may be able to use it as leverage when shopping for a loan.
Usually referred to as a FICO score (named for Fair, Isaac and
Company, the business that develops the most widely used credit scoring
formulas), your credit score is simply a numeric summary of your credit history
compiled by the three major credit bureaus-Equifax, Trans Union, and Experian.
Using mathematical models developed from the behavior patterns of millions of
borrowers, credit bureaus assess the likely risk of a extending you credit or
lending you a sum of money. The formula looks at such things as your outstanding
balances, total available credit, late payments, and the age of your accounts.
The more traits you share with people who have proven to be good credit risks,
the higher your score.
FICO scores range from 300 to 850 points-the higher the score, the
lower the predicted risk to creditors. Because every lender has a different
model of what's acceptable, so there is no standard scale. As a general
guideline, the median FICO score (half of consumers score above, half score
below) is about 725. To qualify for the best loan rates, borrowers
generally need scores above 760. Consumers with scores below about 620 will pay
significantly higher rates and fees to obtain a loan.
Keep in mind that lenders look at many things when making a credit
decision, including your income, how long you have worked at your present job,
and the kind of credit you are requesting. Since they factor in additional
information and sometimes consider special circumstances, lenders may give you
credit even if your score is low, and may refuse you even though your score is
high. Still, your credit score counts heavily in your ability to get credit on
What the FICO Score Measures.
The five main categories of information that the FICO score evaluates, along with their approximate weightings, are:
Consumer organizations advise people to review their credit report
every year or two, particularly before making a large purchase like a house or a
car. This makes it possible to correct any inaccuracies before applying for
credit and/or to catch any fraudulent activity using your identity. If your
score seems surprisingly low, check for inaccuracies in the credit report that
generated the score.
If you do find errors in your credit report, contact the hotline NOW!!!
Do you know you can get different types of return for your investments out there?
So would you prefer getting less than 1%, or 3%, 5%, 8% and even more?
It is the time for your to make the right decision now!
Please Feel Free To Contact The Service Hotline!
(RRSP / TFSA / RESP ......)
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