Info about Credit
Low fica credit scores
A low fica credit score for buying a house would be under 620. A score of 720 or higher gets the borrower a preferred interest rate and terms. Over time a consumer can add fica credit points to his score.
Things that will lower a score are for examples, being late on payments or not paying bills at all, charging too much on credit cards and having too many bills. Scores can range from 300 to 850. Higher scores mean fewer problems for the lender like delinquencies or repossessions. The lenders use these to decide what the risk is to them and who they want to loan money to.
How a 30 day delinquency affects this depends on the score. A score of 680 would be reduced by 60 to 80 while a score 780 would drop 90 to 120. Maxing out a credit card will cost 10 to 30 point at the 680 score and the 780 score would be reduced 15 to 45 points.
It does not take long to reduce these scores when something happens in the life of the consumer. To rebuild the scores takes time. Consumers must pay all the bills on time or even a few days early. Delayed mail and longer processing time can happen, making a payment that should have arrived on time late. Once the delinquency is reported, the consumers credit is affected.
Reducing the credit card debt to 35% of the limit on the credit cards is another large factor. This is the magic number and it will give the consumer the biggest boost in points. These two items account for 65% of the points. Following these suggestions is the fastest way to rebuild a low score.
In just a year or two, the low score can be much higher. This is how to use points to the consumers advantage and increase the lenders willingness to work with them.