Skip to main content

Credit Secrets You Should Know

By


Did you Know, 35% of your FICO score is based on your payment history? 


Fair Isaac Corporation (abbreviation FICO) provides "software for calculating a person's credit score" (Dictionary). It is the largest and best-known of several credit- socing companies located in the USA.


Building or repairing your credit can take years. Consistently making late payments can severely damage your credit score, so make sure you make every payment before the due date. It can take a few days to get the creditor which could negatively impact your credit score. 


Many entrepreneurs don’t always get paid on a set frequency. That can throw their accounts into a tailspin if they are not carefully managing their budget. 


Financial fitness refers to having a healthy and stable financial situation. It involves managing your finances effectively by creating a budget, saving money, and investing wisely. You can achieve financial security and reach your long-term financial goals by being financially fit.



Here are some additional facts related to credit scores:

  • Lenders use your credit score to determine your creditworthiness.
  • Your credit score influences your ability to obtain loans, credit cards, and even jobs or housing.
  • Payment history is the biggest factor in determining your credit score, accounting for 35% of your FICO score.
  • Other factors that impact your credit score include credit utilization, length of credit history, types of credit, and new credit inquiries.
  • You can improve your credit score by making on-time payments, keeping credit card balances low, and maintaining a long credit history.
  • Checking your credit report regularly can help you identify errors or fraudulent activity that could impact your credit score.
  • There are several credit monitoring services available that can help you stay on top of your credit score and credit report.

According to FICO.com, "ninety percent (90%) of top Canadian lenders and credit unions use FICO® Scores." Canada's two main credit bureaus are Equifax and TransUnion if you live in Quebec, and they both use the FICO system. FICO scores range from 250 to 900 depending on where you live. A new borrower will need a minimum FICO score of 580 to 620 to qualify for a loan or down payment program.


How is today’s economy affecting your credit? Share in the comments.



Disclaimer: I am not a certified financial planner. I am just a life coach sharing information.




finance,financial freedom,financial fitness,financial management,financial planning,financial goal,





Labels:

Comments

Post a Comment

Please be reasonable and respectful. Thank you.

Popular posts from this blog

Collected Quotes from Albert Einstein - The man was a Genius

By
Note: This list of Einstein quotes was being forwarded around the Internet in e-mail, so I decided to put it on my web page. I'm afraid I can't vouch for its authenticity, tell you where it came from, who compiled the list, who Kevin Harris is, or anything like that. Still, the quotes are interesting and enlightening. Collected Quotes from Albert Einstein "Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius -- and a lot of courage -- to move in the opposite direction." "Imagination is more important than knowledge." "Gravitation is not responsible for people falling in love." "I want to know God's thoughts; the rest are details." "The hardest thing in the world to understand is the income tax." "Reality is merely an illusion, albeit a very persistent one." "The only real valuable thing is intuition." "A person starts to live when he can l...
Post a Comment
Read more

From Passion to Profession: The Roadmap to Becoming a Life Coach Anywhere in the World

By
Are you passionate about helping others unlock their full potential and live fulfilling lives? Becoming a life coach could be the perfect profession for you. Whether in bustling Toronto, on the serene shores of the Caribbean, or in the tropical rain forests of South Africa, the journey to becoming a life coach is rewarding and empowering. In this guide, I'll walk you through twelve steps to embark on this fulfilling career from anywhere in the world. 1. Self-Reflection, Goal Setting and Boundaries: Cultivate time to reflect on your personal and professional journey, strengths, and desires. What experiences have shaped you? What skills do you possess that could benefit others? Self-awareness is the key to effective coaching. Set ecological goals for yourself, your family and coaching practice and define your boundaries to maintain a healthy work-life balance. Prioritize self-care to avoid overextending yourself. Remember, no one can pour from an empty container. 2. Research Your Mar...
2 comments
Read more

How To Be Great At Being You

By
As humans, we wear so many different hats or masks that it is hard to distinguish which one we are operating from at times.  I am not talking about the roles we play so much as the personalities we play.  The thing with switching hats sometimes is that they often masquerade or show up as somebody else or multiple characters.  "Who are you?", "Who was that?",  or "I don’t even know that person anymore" are often some of the phrases we hear or use of people we thought we once knew. Let’s look at some of the various hats (or masks) we often wear:
Post a Comment
Read more