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SCORE! Knowing your FICO Score

Understanding your FICO Score

It is important to review your FICO Score and you will have to identify all the discrepancies and taken the steps necessary to correct said errors, it’s time to assess your financial situation. The simplest way to do this is to look at your credit score.  There are several ways to obtain your credit score. Contact Zalutsky and Pinski, 312-767-0111. We can help you find it!

It is important to first understand your credit score and how it is used. When we say credit score, what we are actually referring to is your credit worthiness. This number, in simplest terms, will determine the type and amount of debt for which you qualify. The higher your number; the more likely you are to qualify for credit and at a lower interest rate.

Several companies provide credit scoring, but the most widely used is called a FICO (Fair Isaac Corporation) score. FICO creates your score using the information found in a single credit report. This is why your score with Transunion may be different from your score with Experian. That is also why it is crucial that you monitor the information contained in each report closely to be sure it is accurate.

Your FICO score can range from 300-850. While it seems like that’s a pretty wide range, it narrows quickly. You are considered to have excellent credit if your score is above 750. From 700-749 is considered good credit. Believe it or not, a score between 650-699 is generally considered to only be fair and 600-650 is poor. In fact, a person with a FICO credit score below 600 is regarded as having bad credit.

Your FICO score is the first thing creditors see when applying for credit. If your score is not where you want it to be, don’t despair. There are many ways to improve it. In fact, you already took the first step by eliminating all the inaccuracies on your report. We will discuss other steps in future columns.

If you would like more information on the topic mentioned above or to discuss options including debt settlement or bankruptcy call us at 312-767-0111 or via email at News@zaplawfirm.com.