Michael Newman’s latest ‘e-Wealth Daily’ article is titled “Get to Know Your Score”. [‘e-Wealth Daily’ Article]


Michael Newman’s latest ‘e-Wealth Daily’ article:

Get to Know Your Score

If you’ve ever applied for a loan, new credit, line of credit or any kind of financing and been rejected, you know it can be a terrible feeling. You likely felt embarrassed, uncomfortable, and quite down on yourself for not being able to secure the credit you so desperately needed.

What can be the worst part, however, is the confusion. You may be left asking yourself, “What did I do wrong?” or, “How could this have happened?”

After all, to the best of your knowledge, you were a prime candidate for the credit you requested. Well, what you may not have known is that, regardless of how responsible you look, how good of a business plan you’ve prepared, or how good of a person you are, the main factor that determines whether or not you get the credit you were looking for has to do with your credit score.

In fact, your credit score not only determines what kind of credit you qualify for, but also the terms that are attached to it. The higher your credit score, the more access you have to credit and the less interest you will pay. On the other hand, the lower your score is, the less access to credit you may have, and you will likely be forced to pay high interest rates if you do receive it.

Your credit score is calculated by the three major credit bureaus: Experian, Equifax and Trans Union. They are given information from creditors based on your performance paying back credit. For instance, making your mortgage payments on time, your car payments on time, or paying your credit card bills or any other retail credit card. If you miss a payment, your score takes a hit. If things are all paid on time, your credit score improves. The credit scoring system was invented by the Fair Isaac Corporation (FICO) and another name for your credit score is “FICO score.” This is how it is determined:

35% — Punctuality of payments (only takes late payments of more than 30 days into account).
30% — The amount of debt you have in relation to the credit available to you.
15% — The length of your credit history.
10% — Type of credit: installment (mortgage or car payments) or revolving (credit cards).
10% — Recent searches of credit, or newly granted credit.

Your credit score will fall somewhere between 300 and 850, and, the higher it is, the better. The average FICO score is around 720.

If you are unaware of your credit score, it’s important to learn what it is. This way, you can make the necessary adjustments to improve your score and make credit more available to you. Although your credit score can’t be fixed overnight, making the right adjustments to your lifestyle and spending techniques can have long-term benefits to your credit score, so it can be improved.

On Wednesday, I’ll outline the steps you can take to boost your credit score!

e-Wealth Daily

About e-Wealth Daily

The e-Wealth Daily Bulletin brings you daily tips, advice and breaking news related to home businesses, small businesses and internet marketing. Our team of experts gives you the information you need to take your business pursuits to the most profitable level. Founded by Adrian Newman in 2003, the e-Wealth Daily Bulletin and www.ewealthdaily.com are a division of Lombardi Publishing with online newsletters reaching over 100,000 subscribers each month.

* IMNewsWatch would like to thank e-Wealth Daily for granting permission to reprint this article.

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