Mellody Hobson spoke with the TJMS crew to answer your questions on the best way to improve credit score!
How can I improve my FICO score? What is a FICO score and what does it really measure?
Great topic. We all basically know that a FICO score measures how creditworthy an individual is. The higher the score the better your credit—and the more likely you are to get loans and get better interest rates on those loans. Lenders—banks, credit card companies, mortgage lenders—lean heavily on it when they are deciding whether or not to give you a loan. Scores range between 300 and 850. Anything above 650 is good, but anything below 620 will make it difficult to receive money at a favorable interest rate. The average score, by the way, is 664.
Here are some things that go into your FICO score: your payment history, how much money you owe, how long you have been using credit, and the type of credit that you are using. A FICO score accounts forall of these categories, not just one or two, so you really don’t want to neglect one area in hopes of substantially improving another one.
Click here for more tips on improving your credit score!
(Source: Black America Web)