Fica Credit Score

By Author: Jamie Hanson
Total Articles: 3534
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Your credit score is the greatest factors that is considered when you are dealing with financial services. FICA credit score helps to evaluate a person's monetary consistency and stability. It is a numerical code with three digits. FICA Credit Score is evaluated on the basis of details that is gathered from your credit statement or monetary statement. This is done with the help of three main American credit agencies: Equifax, Experian and TransUnion. Any bank, financial institution or credit card company checks your FICA Credit Scores so as to calculate the credit limits and rate of interest each and every time you request for Home loan, private loan, credit card or some other type of credit for private use.

FICA Credit Score ranges from 300 to 850. If you have a greater credit score, you get your loans easily as the risk involved is lower. So lenders or creditors or financial institutions can sanction loans easily. For instance if you have a poor credit score like 450, then the rate of interest calculated is too higher. Thus there are chances that your application may be rejected outright. Whereas, if you have a good ...
... credit score like 760-850, you will get best rate of interest. So it is always recommended to have a better credit score so that your loans are sanctioned immediately without any botheration.

It is not that you won't be able to obtain your loan if you have a weak credit score, but you will need to spend thousands of dollars extra. But with a good credit score you will get your loans easily without spending too much of money. In short, your FICA credit score reflects your capability of paying your payments on your loan. You should know that if you have a low credit score, your application may not be approved by any bank or lending institution. You are charged greater interest rates, asked for greater security and you they may also carry out extensive asset and income certification. Thus, the lending institutions or banks check your FICA credit score before they sanction you any kind of loan. Your FICA credit score helps the banks or the financial organizations to know how safe (less risky) you are as a buyer.

Your FICA credit score is calculated on these 5 major components like your Payment record, Amounts owed in all, Length of Credit history, New Credit, Type of Credit you use. As your credit score is detrermined mostly on your payment records and amounts owed, thus it is necessary to maintain a positive financial record thinking about these two elements. Mentioned below are few tips which help you to attain a great credit score.
- Make timely payments of all your bills,
- Try and keep your balance lower than the credit limit,
- Pay greater than least payment,
- Avoid opening many bank accounts in short time span.

There are a lot of companies that offer you useful tips to maintain a high FICA credit score. You are free to seek help from such online companies. Thus, it is really good to maintain a better FICA credit score for easy financial deals in future.

Since FICA credit score is a measure of your credit worthiness, it's obvious that you need to improve your FICA score and keep it high at all times. Lest you're in need of financing.