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← How to Deal with Car Loan ModificationHigh Risk Auto Loans and Cosigners →Important Things to Know About Your FICO Credit Score
Your FICO credit score is the most important one of all types of credit scores in the United States. This score is used extensively by the lenders across the nation to assess the credit risk of an applicant. FICO is the acronym for Fair Isaac Credit Score, the creators of this credit score, Fair Isaac Corporation. It is extremely important for the consumers in financial market to be well acquainted with FICO, how the system operates, and how to improve this score. At Valley Auto Loans, we boast of an extraordinary tradition of helping poor credit borrowers make the best financial decisions to improve their credit history.
Almost three decades ago, in the 80s, the Fair Isaac Company created custom software that was used by several other companies to derive a number from the credit history of a person. Within a few years, this score was accepted and adopted by the major credit bureaus like Equifax, TransUnion, and Experian as the standard.
Before discussing ahead, it is important to note that your credit report and credit score are two different things and the credit score depends completely on the credit report. Credit report is nothing but a detailed account of the credit history of a person consisting of information like payment history, bankruptcy current credit accounts, credit utilization, and credit inquiries. Every person is entitled to receive a free copy of his/her credit report every year.
FICO credit scores are based on the credit history but are not found in the credit report. You may have up to three FICO scores at a time because the three major credit bureaus calculate this score based on what information they have on their file relating to your credit history. Credit score calculation is done on the basis of different details available from your credit report. However, the all these factors are not considered to be of equal importance. The most important of these factors are history of payments made (35%), total debt amount (30%), duration of credit history (15%), new credit (10%), and type of credit (10%).
FICO credit scores are considered to be extremely important because lenders always check this score before approving a loan application from any individual. By having good FICO scores, one not only qualifies for loans easily, but also receives the best interest rates. Nowadays, many companies prefer checking credit scores of the applicants while hiring employees.
Improving credit scores is one of the most discussed topics in the finance fraternity. It is true that mistakes made in the past may result in a low credit score. However, the good news is that this score gets updated continuously and can be improved significantly by making timely payments, and reducing the debt amount.
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It is so easy and fast when it comes to loan applications at Valley Auto Loans. To understand how our system works, you first need to know what we stand for. At Valley Auto Loans, our focus is on the client. We make sure that anyone, regardless of their credit score or history has the ability and opportunity to be one hundred percent approved for a high quality auto loan. We run our system with a massive database of trusted lenders that specialize in bad credit auto loans. Because each lender is focus on helping those with bad credit, it is nearly impossible for anyone to be declined. So apply today at Valley Auto Loans, and see just how much we have to offer.