Coming changes to how your credit score is calculated may help or hinder your ability to get a loan.
Fair Isaac says that its FICO scores are used in 90 percent of U.S. lending decisions.
The higher your FICO score, the better your credit.
A FICO rating above 800 is exceptional, and one below 580 is poor.
- confirm your credit report is accurate.
Order online fromannualcreditreport.com, the only authorized website for free credit reports, or call 877-322-8228, toll-free.
Don’t apply for credit too often.
Lenders don’t like to see too many credit applications in a short time.
Pay down your maxed-out cards first.
Lenders like to extend credit, but they don’t like it if you use it all.
Use your credit sparingly.
Look for a low-cost credit card.
Don’t close out old accounts.
Lenders like borrowers with a long credit history.
We’re seeing some pullbacks on approvals and credit limits, along with less generous sign-up bonuses.
Lenders will be drawn to the much lower default rates the FICO 10 Suite is promising."
The changeover to FICO 10 could take time.
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