The credit score (“credit score”) FICO is a number that can be from 300 up to 850. In the united States there are 3 bureaus of credit: TransUnion, Experian and Equifax. These 3 bureaus credit are responsible for maintaining your credit report and 3 of them can do so in a manner autonomous and having different result in up to 3 different credit scores FICO. The good news is that for example banks when they make loans or car loans or home to assess applications for credit cards best used credit score, FICO to take the decision to give you credit or deny you the credit you are looking for and the interest rates that your credit will have.
The Credit Score FICO is distributed in the following way:
From 300 to 580: Credit is denied or only approved at the highest levels of interest rate. If you are in this level these in a lot of trouble, or just beginning your credit history. The good news is that you should not have a lot of debt because banks you have not been given much credit. The bad news is that with interest above 25% is almost impossible to buy something of value without end up paying three times (or more) of its value.Definitely starts with a pre-paid credit card and store credit trade.
581 650: Your chances of being approved for credit will improve a little but the price to pay remains the high rates of interest. The interest rate must be between 20% and 25%. Don’t fall into the trap of asking for a lot of credit applying for credit cards from department stores such as Sears, Home Depot, Best Buy and others, because it will be more difficult to lower the rate of interest once your line of credit used to increase more than 50% of the maximum credit allowed on all your cards.
Of 651 to 710: it’s Very much easier to qualify for credit although at levels intermediate or moderate interest rate is usually 15% to 20%. Your available credit maximum increased significantly allowing you to acquire multiple credit cards from places like Best Buy or Home Depot, you should already possess some banks also and the best a American Express (preferably no annual fee) and also for a loan car and home. The stagnation will occur if your salary does not grow to maintain your lifestyle. I imagine that you bought a flat tv 50 inch the first day that you had your card Best Buy but if your salary is not up it so your credit doesn’t have room to improve.
Of 711-750: Easily qualify for credit with interest rates competitive. This level (or better) should be your goal when you decide to purchase your home and save in the long term (remember, they are payments that last for 30 years). The difference between your salary and what you have is quite significant as well as the sum of the credit in use in comparison with the maximum limit of your credit.
751 + : At this level, it is you who have the advantages against the bank. The levels of interest rates are the lowest and the treatment of banks towards your person is a VIP (very important person). Your behavior economic is worthy of recognize and admire as you find yourself in a very selected company.
The credit score FICO is very important to only if the credit is important to you. Usually it is, because we need credit to buy our house, our cars, it is advisable not to abuse or to think that you have to buy a lot and use all the credit you have to improve your credit and be able to purchase more things even. Your credit history contained in your credit report is the most important factor in calculating your credit score, FICO, that means that it’s time that you need to demonstrate that the risk of lending you money is little.