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Finance’s Nelson Soler

by

MEI

Our Credit Score W

Define Us!

heather we like it or not our credit score defines our character in the United States. Having a low score may prevent us from buying our dream car or house, renting a good apartment, starting a business, obtaining some types of insurances and in some instances, obtaining a job. Lenders, insurance agents, renters and even employers look at credit scores as an evaluation criterion. Our credit score is called a “FICO score” and it is a number between the ranges of 300–850. There are three credit reporting agencies in the United States: Equifax, TransUnion and Experian. These agencies are consulted when your credit is being evaluated. In the United States, the average FICO score is 723. Typically, credit evaluators look at the three reporting agencies credit reports and average their scores. Rarely do the three rating agencies provide the exact same scoring number.

• Avoid having multiple general cards such as Visa or MasterCard Verify your credit report annually. This service is free once a year to Wisconsin residents via website www.annualcreditreport.com. If you also want your FICO score you may be charged. Don’t concentrate on the FICO score rather on the accuracy of the information contained in the report. Our credit score defines our character and our financial capabilities. We must take this score seriously and manage wisely.

What is evaluated to determine your FICO score? This has always been a point of contention among users. Generally the score according to www.myfico.com is created as follows: • • • • •

Payment history - 35% Amount you owed, highest extended credit - 30% The length of your credit history - 15 % New credit obtained - 10% Types of credit used (revolving, credit cards vs. installments, loans) - 10%

**Beware that the different reporting agencies also add and consider other criteria such as collection records and number of recent inquiries on your credit report.

How can you maintain a good score? • Pay on time and at least the minimum required amount • If you cannot pay on time, call the creditor immediately and notify them and try to make alternate payment arrangements

• Don’t apply for a lot of credit cards or loans at the same time • Negotiate your interest rates with credit cards

414-763-0739 Milwaukee, WI.

empresario

• Don’t obtain more credit that you can handle

Wire • ISSUE JULY 2012

• Request payment plans when you receive large medical or utilities bills. Never just let the bill sit. When you request a payment plan, be sure to ask for a written confirmation. Typically when you make payment plans in writing, you will not be placed in collection so long as you continue to make your payments as agreed upon

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Empresario wire issue 3. (Health and Wellness)  

Its a Bilingual magazine that is focused on Business, News, Networking and much more. This issue is based on Health and Wellness.

Empresario wire issue 3. (Health and Wellness)  

Its a Bilingual magazine that is focused on Business, News, Networking and much more. This issue is based on Health and Wellness.

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