By Manuel Tovar, June 28 – Hispanic Solutions Group
Always contributing with a better orientation to financial users or consumers, through its specialists, Hispanic Solutions Group, we reach you some recommendations for the correct management of your credit score.
Credit score FICO of a person is not something to be taken lightly. Obtained through a system called a credit rating, it largely determines the decision creditors make about whether or not to grant you credit. A credit score can also be used to determine the terms and interest rates you are awarded.
The referred score is obtained after the evaluation of your credit report. Some of the items that appear on your credit report include the number, types, and age of accounts you have, history of paying bills, whether you pay them on time, and outstanding debt. The creditors then use a statistical program to compare your loan repayment history with that of consumers with similar profiles.
Generally, the scoring system assigns points to each factor that has the ability to predict the person most likely to pay a debt. The credit score, which is the total number of points, predicts a person’s credit worthiness. Ideally, it represents the probability that a consumer will pay debts when they are due or even earlier.
Here’s an interesting question: Why is good credit important to you as a consumer?
As already mentioned, your score largely determines the decision creditors make about whether or not to lend you money. If a lender decides to advance you credit, your score will also be used to determine the amount, as well as the terms and interest rates. Some insurance companies also use credit reports to anticipate your likelihood of filing a claim and the amount. As such, this information is helpful to them when deciding whether to provide you with insurance and the premium to charge. This includes auto insurance companies. Insurance companies refer to these scores as insurance scores. Therefore, consumers are advised to maintain their creditworthiness for a variety of reasons.
Here are some other benefits you can get from having a good credit score:
• Determine, make it easier for landlords to approve your home and apartment rental application.
• Gives you more borrowing power. Banks and other financial institutions will find it easy to let you borrow more money at lower rates. This is mainly because a good score increases your bargaining power.
• Good credit makes you feel good about yourself, especially if you’ve had to try harder to bring your credit score from bad to good.
Finally, we tell you: while lenders often consider many factors, in addition to your credit score, when making credit decisions, a good score makes you perceive you as low risk. Ultimately, you will qualify for many types of loans and credit offers at the lowest rates available.
We invite you to follow our social networks: LinkendIn, Facebook, Twitter and Instagram to find more information related to finances. Also on our YouTube channel The Credit Channel to learn how to improve your credit. If you need help in repairing your credit, disputing debts that do not belong to you, or other services, call us at (612) 216-1599.