More see lower FICO scores

Nearly 1 of every 4 credit users has a poor credit score–600 or below.  That means they’ll likely be denied if they want a loan or mortgage.

According to industry experts, this is the first meaningful distribution shift in scores since FICO instituted its scoring system in the late 1980s. Typically, only about 15% of credit users have scores of 600 or below.

Everyone who uses credit has a score, which ranges fro 300 to 850.

35% of your score is payment history (so pay bills on time)

30% is amounts owed (the more cards, the lower your score)

15% is length of credit history (longer is better)

10% is new inquiries made (make several and your score declines)

10% is credit in use (how much credit you have vs. how much used)

Do you have an A?

A = 750+ (you get the best interest rate for loans)

A- = 725-749

B = 700-724

C = 650-699

D = 600-649 (your loan rate may be at least 1% higher than if you had a 750 score

F = Below 600 (get help to raise your score)

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