That is the Credit Score FICO?

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.

What are the New Laws for Credit Cards?

Many of the laws of Accountability, Responsibility and Disclosure of the Credit Cards entered into force immediately, but most of the laws recently went into effect this past Monday, February 22. They mean and how they apply to your person? Find out about the new laws and protections for the consumer as well as the new strategies of the credit card to continue charging more. Learn because you do not know your terms of credit is like lending money to a stranger.

It is public knowledge that these laws to curb the abuse of company credit cards are not enough. In the months prior to the law coming into force, the companies of a credit already had adopted tricks and traps intended to evade the law.

From 01 February 2018, the companies issuers of credit cards:

No longer will be able to increase the interest rate on an existing balance unless the holder of the credit card this delayed 60 days or more or he or she has access to a type of interest variable. If the interest rate of the credit card will increase due to delinquency (non-payment) but the owner pays on time for six consecutive months, the company credit cards should reduce the interest rate to the original value.

You must apply any amount above the payment minimum monthly balance with the rate of interest high. At the end, when you pay more you anger the balance that is costing more to maintain.

You should use only the balance of the current month to calculate interest charges. No longer allowed to calculate the charges of interest, using the average of the balances of the current month and the previous month of your credit card.

Stops the payment for exceeding the limit of your credit card unless the owner has asked and stated that you want permission for going over your limit and that by doing so there will be an additional fee for exceeding.

You must notify the client 45 days in advance of any significant change to the terms of contract of the credit cards.

It allows a waiting period of 21 days from the mailing of the payment minimum, and when it imposes a charge for late payment when you pay your credit card. You open noticed that you now receive the accounts (the“statements”) of credit cards much earlier than before.

It must limit the payments to credit cards during the first year that it is open to not more than 25% of the limit of credit initial. This rule does not include extra payments for tardiness or payments for using the credit card above your limit.

As I said at the beginning, many of the rules contained in this law are considered ineffective when the companies issuers of credit cards have found new ways to continue charging excessively. You can’t expect the government to help you with the credit cards, but be responsible for your financial health.