HOW TO ACHIEVE THE BEST CREDIT SCORE 1. Achieve The Best Credit ScoreFirst, lets talk about the differences between FICO and other legitimatecredit scores, and what I call "Fake" or "Estimated" scores.FICO credit scores, is a brand of credit score formula started by Fair IsaacCompany, and is an abbreviation of their company name. This type of creditscore one others like it - are the ones that lenders rely on to determine yourcredit risk score.Fake scores on the other hand, may actually be legitimate score models, butthey are NOT used or recognized by lenders to determine your credit riskscore, but is that companys own estimation of your credit risk, - using theirown software instead of a legitimately accepted credit scoring model. So –there could be a big score discrepancy between your Fico and your fake, orestimated credit scores. So keep that in mind, not all credit score models arethe same.So lets start with helping you understand more about legitimate creditscores. There are three major credit bureaus; Equifax, Experian andTransUnion – and each of these have their own credit score model thatlenders will accept, for Example, Experian uses the FICO credit scoremodel, Equifax uses their Beacon score model, and TransUnion uses FICOClassic – all of which are legitimately recognized scores by lenders, and arethe only credit scores that matter. So when a lender pulls your credit, theyonly pull legitimately recognized score calculations.There are several mysterious and vague aspects of the credit scoringformula, including its unconventional scoring range that starts at 300 - andends at 850. So why the 550 point variable? © Legacy Legal LegacyLegal 2. Who knows and who cares! What you need to know and care about is yourcredit score and how to obtain the best credit score possible.Each bureau has its own scores that range between 850 for a high, and 300for a low and may vary from bureau to bureau within 30-50 point rangedifference. The best credit score you can attain is 850. 850 is rare nowadaysand is really no different than a 750 score. Thats because lenders arelooking for the best credit score range which is anything higher than 749.Credit scoring is used because banks employ sales people who are nottrained on how to read a credit report and understand how to calculate thebanks risk, so the credit score is to help banks and lenders make gooddecisions without requiring in-depth training of their sales teams.The best credit score range of 750 - 850 is considered an “A” credit score -which will qualify you for the best loan rates and terms.The scoring range breaks down like this: 750-850 700-749 600-699 500-599 300-499 A B C D F © Legacy Legal LegacyLegal 3. The lower your score range, the higher your interest rates will be and theworse your loan terms. Get too low and you won’t qualify for a loan or creditcard at all. If you are in the “D” or “F” range, creditors see you as too great arisk and won’t lend you their money.Not only does your credit score affect new loans, but existing accounts aswell. Creditors whom you already have accounts with often look at yourcredit records to see if you pose any new risk to them. If your credit score islower from when they issued you credit, your creditor may lower your creditlimit. Also, lenders have been known to reward good behavior as well. If theysee an improvement in your score and you are in the best credit scorerange, your interest rate might be lowered and your limits raised (toencourage continued business). And yes, you should call them to remindthem how wonderful you are to have such a high credit score, and ask for abetter interest rate.Your credit score will fluctuate depending on account activity and yourpersonal behaviors, so do everything in your power to achieve the bestcredit score possible and then maintain it.Here are a few tips on how to maintain the best credit score: 1. pay your bills on time every month, 2. keep account balances below 30% of your credit limit, 3. have a healthy mix of types of credit, 4. spread out your debt among several cards or loans, 5. apply for new credit only when necessary, like once/twice a year 6. don’t close accounts as a strategy to raise your score.Just do the best you can to stay on top of your accounts and review yourcredit history periodically. The more diligent and consistent you are, themore likely you are to achieve and maintain the best credit score.It wouldn’t hurt to look at your credit history once or twice per year to ensureall is well. If there are issues beyond your understanding, that need repair oryou just don’t have time to learn it all, hire an affordable credit repaircompany to improve your credit and obtain the best credit score. © Legacy Legal LegacyLegal 4. Want to Achieve the Best Credit Score? LegacyLegal We Can Help you Take the Next StepYou Can Achieve an 850 Score! © Legacy Legal LegacyLegal
Posted on: Thu, 11 Jul 2013 18:11:53 +0000
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