Frequenlty Asked Questions

Your credit score, or FICO score, is essentially a calculation used by lenders to determine your eligibility for a loan, how much you can borrow and the corresponding interest rate.

Previously, your credit score was a mysterious, hidden computation that was primarily based on your payment history. Today, the breakdown of your score is a more clear-cut computation based on numerous important factors.

The five different factors used to calculate a score range of 300-850 need to be carefully examined and understood:

1. Payment history
2. Amounts owed
3. Length of credit history
4. Credit mix
5. New credit

To learn more about the FICO Score Calculation, read here

Debt reduction is the answer. An unhealthy debt-to-income ratio is essential to a solid credit score and financial health. Too much debt makes it impossible to obtain good lending rates or a balanced monthly budget.

Read more about How to Enhance your Credit Score