How to Get a Loan Even With Bad Credit? Understanding the Importance of Credit Scores Learn how your FICO credit score is calculated. There are five areas FICO considers when calculating your credit score, and each is weighted differently. The importance of each areas is approximately: Payment History — 35%. The most important factor in your credit score is whether or not you have a good track record of paying your debts on time. Amounts Owed — 30%. This examines how much you currently owe. Owing money isn't automatically a bad thing; FICO will examine how much credit you have available and how much of it you are currently using. Length of Credit History — 15%. A young person with no credit will likely have a low score here, but this can be balanced out by having high scores in other areas. Generally, a longer credit history will give you a higher score in this area. New Credit — 10%. If you have opened several new accounts over a short period of time, especially if you have a short credit history, this can lower your score. Type of Credit Used — 10%. This area examines your retail, installment loans (such as auto payments), mortgages, and credit cards. Your score will be higher if you show you have a good, balanced mix of credit.
--------- CONTENTS ---------
00:05 Learn how your FICO credit score is calculated
01:11 Know how your credit score can impact loans
01:34 Order your credit report and check for errors
02:11 Dispute any errors on your credit report
--------- CC LICENSE --------
Creative Commons license: Get-a-Loan-Even-With-Bad-Credit (wikihow & authors)
Don't Forget to Like the video and Subscribe :-)
0 Comments