Results tagged “FICO score” from Payday Loan Quotes Blog

A credit score is a mathematical computation that results in a number that's used to help lenders determine how likely it is that you'll pay back a loan. Your score is based on how you've handled paying back loans in the past. The higher your score, the less risk you pose of paying late or defaulting, the lower your interest rate. Hence, a higher credit score makes a loan less expensive for you.

The most frequently used credit score is the FICO score, which ranges from 300-850. They are created using software developed by Fair Isaacs Corporation. Most people score in the 600-700 range. Scores above 700 are desirable. Scores below 600 are considered a financial risk to lenders and creditors. While scores may vary among bureaus, they generally represent the same credit risk.
FICO scores are based on five factors. The level of importance of each factor varies by credit profile, and your profile changes over time. In general, they're weighted as follows:
• Payment history (35%)
• Amounts owed (30%)
• How long you've have credit (15%)
• Amount of new credit (10%)
• Types of credit used (10%)

Do you want to save hundreds or thousands of dollars on loans? Your credit score can make a big difference! The amount you pay for a big-ticket item on credit can be quite different for someone with a high score compared with someone with a low score. Consider this: As of August 22, 2007, if you had a FICO score of 760-850, the highest bracket, you'd pay $1832 for a 30-year fixed rate $300,000 mortgage loan at 6.172 percent. But if you had a score of 500-579, the lowest bracket, you'd pay a whopping $2674 for that same mortgage, which would be at 10.188 percent. That's $842 more every month, $10,104 per year! These comparisons demonstrate how costly it is to have a low credit score and how much money a high credit score can save you.
The payoffs don't stop at lower interest rates on loans - with a high credit score you'll get quicker credit approval, reduced deposits required from utility companies, and approval for apartment rentals.

Welcome to the blog on paydayloanquotes.com. On this blog we will be posting all sorts of information about payday loans, repairing your credit, and understanding your FICO score. We hope you find this helpful and informative.