Results tagged “lenders” from Payday Loan Quotes Blog

Your FICO score is based on a mathematical equation. It is set up to evaluate information from your credit report and compare it against patterns of other credit users to identify your credit risk, that is, how likely it is you'll pay back loans. Scores may differ among the bureaus for three reasons:

1. Not all lenders report to all three bureaus.
2. Not all lenders report to the bureaus at the same time of the month.
3. The Fair Isaacs software for creating the credit score is different (but similar) at each bureau.

A relatively high percentage of credit reports contain errors. These errors can lower your credit score and cost you big bucks in terms of interest rates or qualifying for an interest-only mortgage loan rather than a 30-year traditional fixed-rate, for example. Therefore, it's a good idea to check your credit report for mistakes.

Look for the following:

• Identifying information that has you mixed up with someone else's activity
• Incomplete information
• Accounts that don't belong to you
• Payments reported as late but that you paid on time
• Debts paid in full that still show an outstanding balance
• Late payments and other negative events that took place more than 7 years ago, 10 years for bankruptcy

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%)