Credit Report-Understanding Your Fico Credit Score

Credit reports and understanding your FICO credit score is essential whether you are trying to buy a home, a new car or applying for a credit card. Lenders will want to determine the risk their taking by lending you the money. Most lenders use your FICO credit score (you have 1 score for each of the 3 major credit agencies) to determine if they are willing to lend you money, how much money and at what terms you will receive.

FICO Credit Score-What exactly is it and how do they get it

Your FICO credit score, named after the company that developed it, Fair Isaac & Company is a number between 350 and 850 ( though some reports have it going as high as 900). Lenders believe the higher the number, the better chance you will make your loan payments and make them on time. They use a variety of information to come up with this score. It’s often been compared to a laundry list of all your credit accounts, all payment history, as well as some other personal information that when combined together will be the determining factor for most lenders as to your credit worthiness.

FICO Credit Score – Let’s Brake It Down.

Payment History – 35% of your score is based on your payment history of making payments on time and not missing any. This probably is the most important item lenders will look at when determining your credit worthiness.

Amount Owed – 30% of your score is based on this number. This is derived by taking amount you owe relative to amount of credit available. Your considered a higher risk if your close to maxing out your credit. Lenders believe your more apt to late payments therefore lowering your credit score.

Length Of Credit History – 15% of your FICO credit score will be based on this number. This is just how it sounds. The longer you have an account opened in good standing, the better your credit score. Simply put, your score considers your oldest account and average length of all accounts.

New Credit – 10% of your FICO credit score is determined by this factor. Opening up several new accounts in a short period of time is not a very good idea. This can lead to a lower score. Also, the amount of inquiries can affect your score as well. This does not include any inquires made by you, a potential employer, or if done so by a lender wanting to send you an unsolicited pre-approved credit offer.

Types Of credit In Use – 10% will be determined by the various mix of credit lines currently in use by you. Such as credit cards, retail accounts, finance company loans as well as mortgage loans are considered.

FICO Credit Score – How Do I Measure Up?

Roughly 60 percent of people have credit scores of 700 and above. A score of 720 is the number everyone should be shooting for. If your score is 720, there’s really no need to try and raise it because lenders lump you in the same category as folks with a score of say 800 or 820. With a score of 720 or above, lenders will consider you a safe risk and typically you should receive what you need at a good rate with no problems. If however, your score is below 700, then it is definitely worth your time and effort to pump up that number.

If your looking to increase you FICO credit score, just check out our how to fix credit products and services and see what resources our site has to offer.

Credit Card Debt Program-The Right Way To Go

Of course I am just generalizing since there is no way for me to know everyone’s own unique situation. However, being that I am considered a pretty good resource in this industry as well as having high valued knowledge in this field I can make those kinds of statements. As you will soon learn, I am not a big fan of credit card companies or their practices. So yes, I will always advise everyone to find a good credit card debt program and then join to eliminate credit debt of this kind as quickly as possible.

Credit Card Debt Program-Saving Each Consumer Thousands Of Dollars

It’s estimated that it will take the average consumer about 18 years to pay off a credit card debt of just $5,000.00 if they pay the monthly minimum. Of course this figure is based upon them also having a descent interest rate as well. Since the average credit debt in America is much high then this, and with interest rates across the industry being high, well let’s just say it’s not a pretty picture. By finding a good credit card debt program you will be able to eliminate credit debt in just a few years. This will literally save you thousands of dollars just in interest.

Credit Card Debt Program-Why should I Join One

Many people often ask why should they even care about joining a credit card debt program when they can just file for bankruptcy if their situation doesn’t improve. Without going into all the details right here, this procedure should only be used as the last option if your situation warrants it and it provides you with the only way to eliminate credit debt so you can begin to live again. It could take you a long time, not including all the hard work you will have to do, to rid yourself of that stigma of having filed for bankruptcy. Remember, when you join a credit card debt program, not only will you eliminate credit debt much quicker then usual, but you will also be improving your credit worthiness as well.

Credit Card Debt Program-Where Do I Start

If your credit card debt is high, or even out of control and you feel the need to eliminate credit debt of this kind from your life then its time to look for a good credit card debt program that will help you achieve this. The Credit-Debt-Help-Site is probably one of the most, if not the most, leading resources for the average consumer wishing to find this type of help. We have done all the leg work for you already and have listed only the top companies in the industry for you to choose from. Just click on the debt consolidation and settlement tab at the top of page or to the right to begin.

Finding a good credit card debt program that’s right for you has never been easier. Look over our listings, fill in a few of the forms as requested,( a 1 minute or 2 minute procedure at most), and simply talk to  their  representative about your situation and how they can help you. Of course you will be under no obligation, and this is a free consultation so there should not be anything holding you back. So go ahead, fill out a few forms and see for yourself what they have to offer you.

Also, check out what Google has on this topic as well. Just click on their displays located at the bottom of page and middle right hand side of our pages. (off gray color boxes)

Your Truly,

Michael

The Average Credit Debt in America Continues to Rise

Every year, the American consumer raises there average credit debt by 12%. Last year, the credit debt average per consumer was $10,300. This year, it has increased to more than $11,000. Without mortgages being included, an average household debt is between $18,000 and $21,000. More than one fourth of United States’ population ranks higher than the nations average credit debt. More than 40% of us are spending 130% more than we make today. By these numbers, we can see that as a society we are sinking to a new level of credit downfall. Meaning that we rely more on credit than ever before to help with things when we don’t have enough cash to pay for it. While this is good for lenders and credit card companies, it is not so good for you and me. Not only are we sinking more and more in debt, we are also easy prey for companies to take advantage of our financial situations. By making it incredibly easy to get credit cards and payday loans, companies are luring you in with incredible deals to start with, then changing the rates after you are hooked. Most of these places will lend to anyone with a check stub or checking account regardless of credit scores, history or credit debt. For people that already have debt or spending issues, this can be adding even more financial troubles to their already existing ones.

In order to fully understand how high the average credit debt in America is, let’s look at some practical numbers. If you make up to $46,000 yearly, you should only be using half of that for your debt. The other half should be used for savings, expenses, clothing and food. If you earn more than $46,000, you can spend 10%-15% more on your credit debt. If you are one of the unfortunate ones that make a lot less than this amount, you may have to spend more than 50% depending on your debt level. If you are having serious debt issues, you may want to seek help to resolve financial situations that you cannot handle on your own. If you have a lot of outstanding debt, this could affect your credit score by making it lower. This in turn can affect your financial future. While your payment history makes up 35% of your credit score, outstanding debt makes up another 30%. Credit scores can range from being average at 690 to the highest at 850. Most of us will probably never see 850 on our credit score since it is virtually impossible to achieve. Lenders don’t like lending to you if you have more outstanding debt than they think you can handle at one time. So most will offer other solutions besides loans when that situation arises.

When trying to reduce credit debt, we can all make a difference. We can all use common sense and good judgment when it comes to spending. By teaching our children responsibility when it comes to paying bills and saving for tomorrow, we can lower the average credit debt and show them that there is a better way of living.