credit score breakdown

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"Figure Out How the FICO Credit Score is Calculated And Use That Towards Your Advantage To Improve Your Credit Score or Simply To Keep It Up!"

Ways To Improve Your Credit Score: Part 3 of 4

« Read Part 2: The FICO Score formula, created by the Fair Isaac Corporation, is proprietary information, so it’s not unveiled to the public. But it’s not a complete secret. This article was written based on a variety of information found online. So, some of the values may be a bit different from what’s actually used, but they are reasonable guesses and will help you to get an idea of how the FICO score is calculated.

By knowing what’s factored into your FICO score, you are another step closer to knowing how to improve your credit score. And at the very least it’ll help you take measures to make sure it doesn’t get lower.

The basic formula provided by FICO is broken down into five parts and how much they weigh towards your score:

  • Payment History – 35%
  • Credit Utilization – 30%
  • Length of Credit History – 15%
  • Types of Credit Used – 10%
  • Recent Search for Credit – 10%

Keep in mind the range of the FICO score is 300 to 850. This means you can’t get a FICO score lower than a 300 and the Read Part 4:

Credit Score Meaning

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"Credit Scores Go Beyond Banks and Loans, They Affect Many Parts of Your Life. Learn What A Credit Score Means"

Ways To Improve Your Credit Score: Part 2 of 4

« Read Part 1: Are you trying to figure out what your credit score means to you? Are you wondering if your credit score can help you:

  • Receive a better job offer
  • Qualify for a nicer credit card
  • Get a better insurance rate
  • Obtain a better rate on your loan

Wondering if getting your score gives you any of these benefits or at least a small step towards being financially smarter? Do any of these questions sound familiar? If so, then this article is for YOU! And you should scroll down and read this entire article.

It’s Smart to Be in the Know

There’s really no other way to say it. People who have their financial ducks in a row do MUCH better than those who don’t. Even people who have worse credit than the ones with good credit! Confused? Let me explain.

The numbers we usually have on our minds are our age, cholesterol level, salary, or even sports scores. The simple truth is that your credit score is probably the most important set of numbers attached to your identity that you don’t know, BUT SHOULD.

Though a bit strange, the simple truth is that your credit score can affect:

  • The educational options available to you and your family
  • The neighborhood you live in
  • The life insurance you own
  • The job you are offered

You should know your credit score BEFORE you apply for a loan or make a major financial decision because it will improve your options.

Not knowing your score leaves you vulnerable. This can lead you to be a victim like so many we’ve read about in the housing, banking and job market fall out of the past few years.

Lessons Learned

Yes, we run into hard times and mistakes are made. We have difficulty paying back our credit cards or loans at times. It’s not unusual and it can happen to anyone. But being PREPARED and making sure you are RESPONSIBLE enough to check and monitor your credit score, is a decision that each of us has instant control over.

You need to be proactive, smart, and savvy with your credit in order to guarantee you get the greatest opportunities available and don’t become a victim!

Stay tuned for our next major artilce that discusses the FICO Credit Score Breakdown. Coming soon!

Read Part 3:

Ways To Improve Your Credit Score

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Learn What A Credit Score Means To You, How A Credit Score is Calculated, and Some Quick Tips on Improving Your Credit Score!

With the recent financial hardships millions of Americans are facing, it’s more important than ever to make sure you’re protecting and taking steps to improve your credit score.

Through this short series of articles, you will learn:

  • What the credit score meaning is and its affects on your life – Yes, your life! It’s amazing how much your credit score can affect where you live, your education options, and even which job you get. More people should be aware of this. Think of it as being a part of the game of life – your real life.
  • The credit score breakdown in detail – The first step to winning in the credit score game is to understand the rules. I will be discussing how the most commonly used credit score, the FICO Score, is broken down and calculated. Please note that since this is FICO’s bread and butter, their complete formula isn’t public. But the information provided does come through some sound research and are based on reasonable assumptions.
  • 5 best ways to raise credit score – Based on what is known about the FICO Credit Score formula, we can clearly figure out 5 ways to raise your score or keep it up. These tips will help you stay on top of the credit score game and make sure you continually optimize it.

Hopefully these articles will expose you to new information and help you find additional ways to improve your credit score. Please feel free to contact us with your feedback and questions.

Read Part 3:

How To Build Credit With The Public Savings Bank Secured Visa

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I was provided the following article for the Public Savings Bank Secured Visa. In a nutshell, this card allows you to create good credit history while removing the risk of missing a payment, which in turn will improve your credit history. Here are the simple steps they provide on their site:

  1. You deposit a minimum of $300 into a Public Savings Bank FDIC insured deposit account.
  2. You can then make purchases with your card up to the amount you have in your security deposit account.
  3. You must pay at least the minimum payment before the due date each month. Your security deposit does not cover minimum payments.
  4. Your payments are reported to all 3 major credit bureaus (TransUnion, Experian, Equifax) so you can begin to establish your credit immediately.

For people with no credit or those who have experienced a negative credit event, such as divorce or foreclosure, establishing credit history can be difficult. Without proper credit, everything from a car loan to an apartment or even a job can be denied.

Prepaid cards are one way to manage daily expenses. However, prepaid cards simply provide access to your own money, not credit from a lender. Prepaid cards do not report to credit bureaus and do not help re-establish credit history. Individuals need to demonstrate on-time monthly payments on a credit card in order to rebuild credit history that’s so important.

How can someone who is denied a credit card rebuild their credit?

Well, one option is the Public Savings Bank Secured Visa. It offers people with low credit or no credit the ability to re-establish their credit history and work towards improving their credit score. Individuals deposit money into an FDIC-insured account that acts as a security deposit. They can then make purchases anywhere Visa is accepted or take cash advances up to the deposited credit line amount, currently between $300-$2000. Payments are reported to all three major credit bureaus (TransUnion, Experian and Equifax) so customers can begin to establish credit immediately.

The Public Savings Bank Secured Visa does not require a credit check or even a checking account to apply. Customers can fund their account via Western Union, ACH, wire transfer, check or money order. The card has no annual or monthly fees, and offers 0% APR for 6 months. Rush shipping is available so customers can begin using their card just days after funding their account.

Building good credit is critical at a time when credit is getting harder to obtain. This card allows the customer to build good credit while enjoying all the benefits of a Visa card at very favorable terms.

You can apply for the Public Savings Vank Secured Visa at www.publicbankcard.com and be approved within only a few hours.