FICO is an abbreviation for “Fair Isaac Company” and is the score that is associated with your credit bureau report. FICO scores can range from 350 to 850 and are used to not only determine if a lender will extend you credit, but at what rate that credit will be repaid. In addition to credit-extension, a FICO score is also used by insurance companies for underwriting, apartment companies to determine if you are eligible to rent, and more. With the importance placed upon your FICO score, it is imperative that you take the appropriate steps to ensure the best possible score given your circumstances.
For an individual in financial dire straits, a glance at his FICO score may leave him feeling hopeless. However, there are certain steps that can be taken to improve your FICO score. With an improved FICO score, the money you borrow is repaid at a lower interest rate, your automobile and homeowner’s/renter’s insurance rates go down, and you are more likely to be extended better offers of credit.
The process by which data is reported to the credit bureaus is almost entirely an electronic process. This does not mean, however, that it is error-free. In a report released by the U.S. PIRG, nearly 25% of credit reports surveyed contained a serious error, 22% had the same line of credit listed more than once, and approximately 30% listed closed accounts as still open. According to the report, “Altogether, 79% of the credit reports surveyed contained either serious errors or other mistakes of some kind.”
With this astounding figure, it is no surprise to hear that it isn’t very difficult for you to improve your FICO score. When partnering with an experienced company, one who assigns you a personal credit representative, you are ensured that the most efficient steps are being taken to improve your FICO score. Get started on the road to an improved FICO score today.
Source: US PIRG
