Volume XVII, Issue 3                                                                         3rd Quarter 2009

Your Credit History & FICO Score

When it comes to credit, you need to know that your credit score can and does affect you financially.  Today’s financial indiscretions become tomorrow’s low credit score!

Even though you have “perfect credit history”, you may have a lower than perfect credit score.

 35% of your score is based upon your payment history.                        

 30% of scores are based on debt ratio. 

 15% is comprised of the length of credit history.

 10% is based on credit type (mortgage/auto loans/credit cards)

 10% of your score is based on inquiries

Here’s ways to establish and improve your credit history & FICO (Fair Isaac Company—an organization that establishes an equation to represent your creditworthiness in a three-digit number) scores:

1. Pay your bills on time

2. Don’t bounce checks

3. Start small

4. Visit local lenders

5. Apply for a secured credit card

6. Apply for a small loan or credit card with a co-signer

7. Review your credit report once a year

8. Review your credit report a few months before requesting a major loan

9. Avoid letting accounts to turned over to a collection agency

10. Avoid having judgments filed against you

11. When denied credit, review your credit report

12. Try to avoid constantly switching employers

13. Try to avoid frequent changes in residence

14. Work to increase your income

15. Work to decrease your debt

Remember, establishing credit or repairing bruised credit takes time… it won’t    happen overnight!  You have to approach this as a long-term goal.  If you’re just beginning to establish credit for the first time, take things slow and begin by opening a few small accounts.  With these initial accounts, make sure you use the credit wisely and develop sound habits.  Before long, you’ll be on your way to building a great credit history! 

Important contact information: 

 Annual Credit Report Request, P.O. Box 105281, Atlanta, GA  30348   


 Equifax 800.685.1111   http://www.equifax.com

 Experian (formerly TRW) 888.397.3742  http://www.experian.com

 TransUnion  800.888.4213  http://www.transunion.com v 




Email me at: beth@bethpressler.com

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