What Is A Good Credit Score?

What is a good credit score is a question anyone who is shopping for a loan will most certainly ask themselves. Knowing what is a good credit score and actually shooting to obtain one can result in some serious financial savings over the lifetime of a loan, so it's a good idea to understand scores and how they impact finances. Not knowing can hurt you.

What is a good credit score will depend a lot on the type of loan involved. In general, however, the determination of what is a good credit score falls in line with the FICO rating. This rating is a number assigned to individuals in regard to their credit. What is a good credit score is often answered by nothing more than the FICO, which stands for Fair Isaac Company, rating. What is a good credit score is determined by this organization that conducts statistical research to measure the probabilities that people will actually repay their loans.

The FICO numbers answer the question of what is a good credit score in the form of a range that falls in between 300 and 800 generally. The higher the number, the better, generally. For example, someone with a score of 750 can readily answer the question of what is a good credit score by looking at the types of loan rate offers they obtain. Typically, these people will get very good offers due to their rating.

What is a good credit score is a very important question to ask prior to seeking a big loan. If you find out that the definition of what is a good credit score and your actual score differ greatly, it might be time to repair credit before moving forward.

The reason it's important to ask and understand what is a good credit score is vital to ensure you obtain the best possible interest rates on loans. If a score is too low, you will find yourself paying more, sometimes a lot more, over the lifetime of a loan. What is a good credit score will greatly impact the rates offered.

If you find a big disparity between your score and the technical answer to what is a good credit score, you can do some things to help fix the problem. Try to find out what your score is and check out your report. If you find things that are on the report that need to be paid off and fixed, do so.

What is a good credit score can greatly impact your financial future. Knowing what is a good credit score and shooting for one is something anyone who wants to buy a car, a house or even get a credit card should ask and explore.

Low Interest Auto Loans - Tips To Get Lowest Auto Loan Interest Rates

Unless you're paying cash, it is no wonder that you are searching for low interest auto loans. Getting the best auto loan rates just makes good financial sense.

However it takes a little work to find the lowest interest, simple work that most people are unwilling to do. Here are some tips to get the lowest auto loan interest rates.

1. Low Online Auto Loan Quotes

There are many banks and auto loan companies online that offer competing auto loan quotes. Because of this almost global competition online lenders are more likely to offer you the lowest interest auto loan quote in order to get your business.

Safe, secure and fast you can apply for a auto loan and get approval in minutes. Then you can compare and choose the one with the lowest interest rate. This allow you to shop for a car like a cash buyer, saving you even more.

2. Get Your Credit In Order

Your credit history will ultimately determine how low the interest rate will be on your auto loan. You should know where you stand, credit wise, before you apply for a loan not after. Get your credit report, it's easy, and by law you are entitled to one free credit report a year or every 12 months, get it. The three main credit reporting agencies are Equifax, Experian, and TransUnion.

3. Know Your FICO Score

This plays a big part in whether you will be approved and the interest rate of your auto loan. Your FICO scores are the credit calculations or scores many lenders use to determine your credit worthiness.

The FICO credit score range is widely accepted to be between 300 and 850, the higher the better. Raising low FICO scores not only can help you get the lowest interest auto loan but will also save you thousands on the total cost of the car.

4. Dealing With Bad Credit

It is not impossible to get a low interest auto loan with bad credit. In a perfect world you will have your bad credit erased, but as you know this can take time. Time which you may not have before you need a car.

In the case of a bad credit history a low interest car loan does not mean best low interest rate available, but lowest interest auto loan for people with bad credit.

You definitely want to have options in this case. Taking the time to research and compare auto loan quotes will pay off handsomely with a low rate auto loan with bad credit that will allow you to be able to afford that car.

In many cases low interest car loans are just a click away. If you can get your credit and FICO score high or high enough then it is just a matter of shopping for the best interest rate for a auto loan wisely. That is right, shop just like you will for a car, even if you have bad credit. Then compare a minimum of 3-4 auto loan quotes online or locally, this will enable you to find and secure the best low interest auto loans that you can afford.

Bad Credit Florida Mortgage Loans

Mortgage loans are the loans taken while purchasing a house or property. There are various kinds of mortgage loans namely, FHA (Federal Housing Administration) loans, consolidation loans, land loans, conventional loans, balloon loans and refinance mortgage loans.

Mortgage loan rates in Florida have seen a decreasing trend lately. The real estate market is booming with lower interest rates and presence of a wide range of loans offered competitively by several mortgage loan companies. Even people with bad credit records are being offered mortgage loans, albeit at a slightly higher interest rate. These kinds of loans are known as bad credit mortgage loans. They are also known as sub prime mortgages. Florida bad credit mortgage loans are for Florida citizens who have an unfavorable credit record. There are mortgage loan companies in Florida that specially offer mortgage loans for such kind of customers. They can help customers who have been denied loans from other companies as well. Now, even this has become a competitive market with several bad credit mortgage loan companies vying with each other for customers. Hence, even bad credit mortgage loans are also being offered at competitive rates. Even bad credit loans, if repaid on time, would help to improve the credit rating and clear the way for future loans at good rates. Moreover, bad credit loans can be secured or unsecured.

Bad credit mortgage loans also come with several options. The loans can be customized to suit the individual customer's preferences. Companies are also offering mortgage loans in the form of packages. A bad credit mortgage loan company also offers assistance in repairing the past credit history by providing refinance loans or consolidation loans for previous mortgages in order to improve the credit rating. Bad credit loans are also offered to clients who have declared bankruptcy, repossession, foreclosure or divorce.

There are some basic guidelines considered while approving a candidate for a bad credit mortgage loan. They are: a FICO score of 620 or lower, two (or more) 30 day delinquencies in the past 12 months, one 60 day delinquency in the past 24 months, a foreclosure or charge-off in the past 24 months, any bankruptcy in the last 60 months, qualifying debt-to-income ratios of 50% or higher and limited ability to cover family living expenses each month.

There are several bad credit mortgage loan companies in Florida. Information about these companies can be found through websites on the Internet. Since there are so many companies, look for the company's past history and its specialization and compare it with those of the other companies. Provide good documentation relating to past credit and income statement. A letter from the employer ensuring good conduct and job security would also be useful. Other things considered are the collateral (loan amount relative to the home value), other debts and cash reserves.

3 in 1 Credit Reports With FICO Score - Facts About Your FICO Score From Your 3 in 1 Credit Report

Your 3 in 1 credit reports with FICO score is a summary of your credit background  from the three main credit-reporting agencies; namely: Experian, Equifax and TransUnion. They serve as measures to evaluate your credit worthiness and your capacity to meet financial obligations on time.

This report highlights your paying behavior by summarizing your credit history, years of credit background, number of loans applied, number of loans approved or rejected, and your outstanding balances among others. This document greatly helps financial institutions in evaluating your current and future loan applications with regards to approval or rejection of your application; this will further help them decide on the best terms well suited to your financial behavior.

Your credit report with FICO score contains the most commonly used scoring system developed by First Isaac Corporation which uses mathematical formula in deriving your credit evaluation. Although, the three main reporting agencies use other formulas like the Emperica and the Beacon-score; the FICO score is the one most popularly used.

What you should know about your 3 in 1 credit report with FICO score is that it uses numerous variables to come up with your real score such as the ratio of your present debt versus your available remaining balances, your current debt, length of credit-record, punctuality of payment, and still much more depending on the evaluating company's standards of evaluation.

Your First Isaac Corporation score usually ranges from 300 to 850; and a 720 mark is already considered as good risk; while high-risk loan applicants are those whose grade is below 600. In some instances when your mark is below 600, other companies may still reconsider your loan applications but it should be accompanied with co-makers to further lower their risk.

It is very important to regularly get your credit-report every year because sometimes the information contained in your personal credit document may contain some errors which could greatly affect your mark; thus affecting any other aspects of your life where the credit report is based on. By identifying errors early on, you will be able to prevent damage to your financial reputation which is very crucial in today's life.

Hence, remember to always subscribe to your annual 3 in 1 credit report with FICO score because this will greatly help you track your credit performance; and improve your grade for whatever purposes it may serve you.

Understanding And Improving Your Credit Score

Kelly is a middle class blue collar Californian, who has made a conscious effort to keep a positive credit standing with all his creditors, ranging from his mortgage lender to his credit card company.He has prided himself in making prompt payments to all his creditors and not incurred a single late payment in his entire life. However, much to his horror he got turned down for a $300 limit Sears store card, the reason being a mere 589 Fico Score.

Credit scores also known as Fico Scores range between 300 and 850, with scores over 700 being considered respectable scores, score below 660 would find it difficult to get approved for even small credit cards , similar to the one Kelly applied for. Keep in mind that 58% of Americans have a Fico Score exceeding 700, 27% fall between 600 and 700, with the remaining 15% scoring below 600 *.

Now what caused Kelly to have a mediocre credit score despite having a flawless credit history?In order to answer this question we will look into how Fico Scores are calculated. Below are five factors that are used to derive your Fico Score:

Payment History - 35% Credit Card Capacity (Amount You Owe, compared to credit limit) - 30% Length of Credit History - 15% Types of Credit - 10% New Credit - 10%

Since 30% of your credit score is calculated by factoring in the percentage of your available credit being utilized, it is possible to have a poor credit rating despite having a good payment history by keeping your credit card balances close to maximum limits, which is what happened in Kelly's case.

Now let's study these five categories closely and figure out what you need to do to optimize your credit score.

Payment History-35%

This is the most self-explanatory category, simply pay your bills on time and do not be more than 30 days late on any bill, as creditors start reporting late payments on your credit at that time.

If you do foreseeing yourself being late on a bill , you are better off notifying the creditor in advance as some installment loans might allow a special 30 day forbearance without any adverse affect on your credit.

A recent late payment affects your credit more adversely than an older one, so do not be surprised to see a drop of 60 odd points on a new late you incur if you currently have a flawless credit history.

Credit Card Capacity-30%

It is not how much money you owe, but what percentage of your available credit limit you are using up. You are going to affect your score more adversely if your combined credit card limits are $500 and you are using $400 of it, as compared to using up $50,000 of $100,000 available credit.

Therefore you should carry balances on not more than a couple of credit cards and preferably keep their balances at 10% utilization of the credit limits of those accounts. Doing so can result in an increase of over 60 points.

Length of Credit History-15%

The older your credit history is the higher your credit gets propelled by this factor. You can expect someone with a 20 year old credit profile to have a relatively higher Fico Score than compared to someone that has had a credit profile for 10 years, considering all other factors are similar.

Types of Credit - 10%

This factor pertains to the assortment of the credit accounts found on your credit profile. In order to satisfy this category, one is expected to have open and active at lease one of each of the different credit accounts: a) Mortgage Account b) Installment Account c) Revolving/credit card account.

Of the three different types of accounts above, not having an open credit card account will affect your credit the most. So for those who do not have an open credit card, simply by acquiring one will result in a Fico Score boost of up to 30 points.

New Credit - 10%

Your score is also calculated by factoring in the average length of time accounts have been open on your credit report. Opening a new account contributes negatively to this factor, also it is not wise to close old accounts as they will lower this average. Therefore you will notice as accounts become more seasoned your credit score will propel provided no new accounts have been opened.

Also factored into this category are recent requests for your credit reports made by prospective lenders and the number of recently opened accounts you have. It is advisable to keep both at a bare minimum.

Now that you are able to better comprehend the computation of your credit score, let's do a recap of what steps you can take to ensure the optimal Fico Score.

Ensure credit bureau data is accurate and dispute legitimate errors.
Pay down the credit cards first that are near their limits (assuming interest rates are close to the same).
Pay down total revolving balances, but do not close these accounts. (i.e. keep balances low and limits high).
Move revolving balances to installment debt; but again, do not close the revolving accounts.
Minimize new accounts, do not open any credit accounts unless necessary or if you are looking to diversify your mix of credit accounts.
If you are transferring balances due to an offer from a new credit card company, a better strategy than getting a new credit card is to ask your current credit card lenders if they have any existing offers, rather than opening a new credit card.
If you have closed some revolving accounts recently, a better strategy than opening up new accounts would be to call the lenders where he or she closed the account and see if they can re-open the same accounts and are able to keep the original open date.

Clear Credit History - How to Raise Your Credit Score With More Than 150 Points

Do you want to clear credit history? Are you about to make a major house or luxury car purchase but fear being turned down by creditors? Do you worry that thousands of dollars in interest hinge on 10, 5 and even 1 point in your credit score? Are you being harassed by non-stop collection agency calls? No matter what your case is, a clear credit history will lift a heavy load off you shoulders and will open many doors in front of you. There is no bad debt fairy dust that will solve your credit problems overnight. However, there are a lot of things you can do that will boost your credit in no time.

1 Your most powerful weapon-credit knowledge.

Credit consolidation agencies will charge you an arm and a leg for things you can do yourself if you had the CREDIT KNOWLEDGE. How is your FICO score calculated?What's the difference between installment credit and revolving credit? Which matters more to creditors? Is credit time sensitive? Why does paying off an old collection can actually hurt your credit score? How to make your credit history longer? How to delete collections, late payments, liens and judgments from your report? What is the perfect balance/limit ratio on your credit cards? How to piggyback someone else's credit?The more you know about the inner workings of the credit system, the better your chances to raise you score fast.

2 Learn to think outside the box.

According to the mainstream credit advisers fixing credit takes time, determination, financial effort, careful budget planning and patience. This formula has proven to increase credit score over time. However, most of us want that fantastic house, brand new car, personal or business loan NOW. Time is a luxury we can't afford. And this is where credit tricks and little known secrets come into play. Why try to rebuild your credit gradually when you can focus on the negative items in your report that have the biggest impact om your score? Why pay everything in full when you can negotiate settlement for a fraction of the debt? Why getting delinquent accounts "deleted" from your report is much more beneficial that simply paying them off? Learn more about the loopholes in the system and find the shortcuts to a better credit score

3 Leverage

You do have leverage with your creditors, collection agencies and credit bureaus. For example you can dispute items on your credit report and the credit bureaus are required by law to conduct investigation in a timely manner. You can negotiate "settlement" with collection agencies that are just a fraction of the amount you owe. You can also ask creditors to delete a one time late payment due to unusual circumstances. Keep in mind that you do have leverage and make the most of it.

There are many ways to clear credit history. Just like with everything else in life there is the hard way and the smart way to do it. Once you start thinking outside the box, fixing credit should be fairly easy.

Ways to Get Approved For Credit When You Have a Low FICO Score

If you are someone who has bad credit, it wont' inevitably stop you from obtaining approval, but it can cause it and other, large purchases to become much more difficult than it would be if you had good credit. Here are some ways to get approved despite your bad financial history.

Apply for credit cards at retail and discount chain stores. Many times, stores like these are more willing to give you a chance. If the store approves your application, make small purchases that you can pay off and make at least the minimum payment each month and make the payments on time or early if you can. (If you are able to pay more than the minimum payment or even the entire balance at once, you won't have as much in interest charges and it will improve your credit score.)

Apply for a line at your bank, savings institution or credit union. If they already know you as a reliable customer, they may be more willing to give credit.

You can try for a secured card if nothing else works. You will have to open and keep a savings account as security for the line of credit they give you. Part of the line they give you will be a percentage of the deposit you make to the card.

If you are responsible and are certain you can afford to pay a credit card balance at this time, you can ask a friend or family member to co-sign with you. Remember that the other person's financial history is considered in the application as well, so choose someone who has good credit. Having a co-signer with bad financial history will do you no good. If you can't pay back the balance you charge on the card, this co-signer will legally have to, and it will show up as a mark against their credit rating and it could also damage your relationship with them. Consider that before choosing this option.