March 23, 2022 –Hispanic Solutions Group
According to studies from a well-known financial institution, they report that almost everyone has a credit card, two-thirds of adults have a car loan, more than 40% have a mortgage and almost 30% have a personal loan. And many others buy some form of insurance; many people rent their houses; and whether they rent or if they are owners, people pay utilities.
Credit scores impact all of these listed relationships:
Lenders use them to determine if you qualify for credit and the interest rate.
Insurance companies use them to predict how likely you are to file a claim.
Landlords use them to determine if you are likely to pay rent.
Utility companies may require a deposit if your score is not high enough.
They also reported that your credit score is a three-digit number that represents your history of borrowing and repaying money. In fact, you may have many different credit scores depending on the credit bureau that calculates it and the type of loan you’re applying for.
Credit bureaus rely on the information in your credit report, and it typically ranges from 300 to 850. The higher your score, the more likely you are to be approved for a low-rate loan or receive a higher rate. Favorable response from homeowners and insurance companies.
As you know FICO, the most well-known source of credit scores, generally classifies them as follows:
|Very Good||740 – 799|
|Good||670 – 739|
|Regular||580 – 669|
Exceptional: 800 and above
Very good – 740 to 799
Good – 670 to 739
Regular – 580 to 669
Poor – 579 and under
THE DATA. – Five main factors influence your credit score. The most important thing is whether you have paid your bills on time. Even a few late payments can hurt you. Accounts sent to collection or bankruptcy will cause a big drop.
The next most important factor is the total amount you owe relative to your credit limits. Maxing out your accounts will hurt your score. Try to keep your credit utilization rate below 30 percent. While your initial reaction may be to close accounts you don’t plan to use again, keeping them open with a zero balance will help your credit score, and is best. Other factors include how long you’ve had credit, the mix of accounts, and whether you’ve recently applied for new credit. Generally, a longer credit history and success in managing various types of credit (credit cards, car loans, mortgages, etc.) contribute positively to your score. Applying for too many new accounts in a short period of time will hurt you, request.
In other words, your credit score changes dynamically as information changes. Here are three important tips to maintain a good one:
1. Pay your bills on time.
2.Do not open many new accounts in a short period of time.
3. Manage your credit card and other accounts responsibly. Keep balances low.
Finally, you are entitled to a free copy of your credit report annually from each of the three major credit reporting agencies, even more frequently during the COVID-19 pandemic, but not your credit score. Some financial institutions and other companies you deal with may provide it to you for free or you can get it by signing up for a paid credit monitoring service, if your credit history is clean your credit score should be good.
If you have any questions related to finances, credits in the United States and other related issues, but do not know who to turn to, contact us by going to Hispanic Solutions Group, writing to firstname.lastname@example.org.
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