Credit score protection.QA My FICO score FICO Score A standard credit score which makes up a substantial portion of a credit report that credit bureaus sell to lenders so they can asses an applicant's credit risk and whether to extend them credit. was 775 in August. At that time, I had $12,000 in credit card debt Credit card debt is an example of unsecured consumer debt, accessed through ISO 7810 plastic credit cards. Debt results when a client of a credit card company purchases an item or service through the card system. . Now my total credit card debt is $25,000. Will my FICO score go down? I always pay my credit card on time. Please advise. --T. Dacanay Via the Internet Creditors look at several factors to determine your FICO score, also known as the Fair Isaacs Credit Score. Those factors include payment history, mix of credit, account balances, length of time with credit, credit inquiries, and new credit. Payment history and account balances are hefty variables, accounting for 35% and 30%, respectively, of your credit score. Without knowing your full credit situation, it's tough to tell if your score will go down, or by how much. If this is your only debt, your score may decrease, but you should review your debt-to-income ratio The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . If it's higher than 35%, you may be headed toward financial ruin. For more details on how creditors assess scores, read "Perfect Score" (November 2004). Also, learn about credit mishaps with Stephen Snyder, author of Do You Make These 38 Mistakes with Your Credit? (Bellwether Bellwether A leading indicator of trends. Notes: A bellwether stock is a stock that is used to gauge the performance of the market in general. General Motors was an example of a bellwether stock, hence the saying "What's good for GM is good for America. Inc.; $29.95), who says "the truth of the matter is, you will get the highest FICO score if you pay off the entire balance each month." Mail your consumer empowerment questions to Ask Your Advocate, BLACK ENTERPRISE, 130 Fifth Ave., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011 or send an e-mail to sykest@blackenterprise.com. |
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