How creditworthy are you? Lots of Americans go trough life not having any idea about what a FICO score is and how it could affect your life. FICO stands for Fair Isaac Corporation, a company based in California. Your Fico score is examined by 20 different factors which are divide in to 5 main categories. A quick breakdown would be that 35% is based on your payment history things such as timely payments and late payments. 30% is based on the amount you owe and available credit. 15% is based on the length of your credit history, a 10% value is based on your overall credit histroy such as the types of loans; mortgage, personal loans, credit cards etc... FICO also gives you a 10% premium based on your shopping around of better credit rates.
Your credit score can be from 300-850 the higher the better you chances of getting a lower rate when applying for a loan as well as even being able to get the loan. Managing good credit can help you get things like good small business loans , credit card rewards, a better paying job, and better insurance premiums. Credit gives you buying and saving power when used correctly snd responsibly can be a real saviour
Manage your credit and be responsible!!!