A GOOD FICO CREDIT SCORE CAN BUY YOU ANYTHING
What is a credit score? Who is Fico to judge me? How important is a fico credit score in my life? These are some of the oft repeated questions people ask. With the advent of internet you are able to access a world of information by clicking your mouse. Still there is no clear information on certain issues. Money is one of the main topics discussed everywhere. The whole world revolves around it and there is no short cut to earn lots of money. Even the film ‘The Secret’ is about the law of attraction and how to become wealthy.
A credit score is a number that helps lenders and others predict how likely you are to make your credit payments on time. It also enables the lender to know if he’ll get back his money safely. Often credit scores are required to rent an apartment also. Your landlord may feel comfortable in renting out to you if your credit rate is above 700. These scores range from 350-900. Anything above 700 is considered to be excellent. Your mortgage or loan will be cleared easily with low interest rates if you have a 700+ rating. This shows that you are in sound health financially.
With a good Fico credit score rating you can enjoy low interest on your loans and mortgages. Lenders are all the time looking at your scores to see how credit worthy you are. Fico scores are developed by Fair Issac Corporation which is now commonly used all over the U.S. Equifax, Experian and TransUnion are the three national credit reporting agencies from whom the buyers purchase the credit scores.
How are the scores calculated? These Fico scores are calculated based on information available about your repaying capacity towards credit cards, bills and mortgages. The main issue is whether you pay your utility bills on time and how often you have shifted your residence and so on. This fico score is a key to good life by helping you take a loan and enhance your lifestyle. A good score can fetch you any amount of loan at low interest rates. You can save a whopping $100,000 on interest if you are a buying a house with a good 700+ score. Having a single account with the same bank for a long time establishes your credibility. Loyalty is rewarded, so you should hang on to old credit cards, even if you rarely use them. That's because 15% of your score is based on the length of your credit history, and that includes the age of your oldest account as well as the average age of your accounts. So pay your bills on time and enjoy a good Fico credit score which empowers you to live a trouble free life.
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