Obtain your Credit Scores From this Link
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Get
Credit Reports and Scores from Equifax Website
Understanding your Scores
As a group, the consumers
in this score range, 550-599, have a
delinquency rate of 51%, as illustrated in
the graph. This means that for every 100 borrowers in
this range, approximately 51
will default on a loan, file for bankruptcy, or fall 90 days past due on
at least one credit account in the next two years.
Most lenders would consider consumers in this score range as
fairly high risk.
Understanding the graph:
This chart demonstrates
the delinquency rate (or credit risk) associated with selected ranges of the
FICO score. In this illustration, the delinquency rate is the percentage of
borrowers who reach 90 days past due or worse (such as bankruptcy or account
charge-off) on any credit account over a two-year period. The graph clearly
illustrates the predictive power of the FICO scores, which is why lenders rely
on them for credit decisions.
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Other information you need to Know
- Avoid applying for
too many accounts over several months.
When you apply for credit, whether you qualify for the account or not, this
is noted on your credit report as an inquiry. Too many inquiries are a sign
to lenders that you are desperate for new credit and are attempting to
acquire multiple lines of credit at the same time.
- Do all rate shopping
for a new card or loan within a few weeks.
Shopping for the best interest rate on a new loan or credit card is smart.
For this reason, FICO scores will attempt to distinguish between someone
searching for the best rate on a new loan or card from someone who wants to
open multiple loans or cards at the same time. One way this is done is by
treating all the inquires in a two week period like a single inquiry. So if
you are shopping for the best rate, do so quickly, in a matter of days,
instead of stringing the process over the period of months.
- Don't open new credit
cards that you don't need, just to improve your FICO score.
Unless you are establishing a credit history, don't apply for credit cards
you don't need just to increase your available credit. This approach could
backfire and actually lower your score.
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