How to Understand and Maintain your Credit Score.
The Last Judgement
Last week credit companies made some changes to how your FICO score is calculated.
If you are buying a house, refinancing a house, or renting an apartment- you are being judged based on your credit score. I am not one of those people who advocates being obsessed with your score. I spent two years of my life obsessively reading and worrying about how every minor financial event in my life impacted my score, which is silly. Obsessing about credit is unhealthy, but understand the scoring process staying on top of how to put your best foot forward to creditors is a good thing!
Credit scores range from 300-850. The lowest I have ever encountered was a 463, the highest I’ve seen was 840. Both of those people made about the same income, it was all about how they managed their money. The average credit score in america is about 678. If your score is 700 or above, your interest rates should be low and credit should be readily available to you.
Here is a breakdown of how scores are determined, from Suze Orman: Read the rest of this entry »
