Credit reports and building a killer score

The FICO score is a three digit figure, ranging from 300 to eight hundred fifty, that shows, in a pinch, how worthy you are to be given a loan or a credit card. Obtaining a solid credit score is not as hard as you may think, but it does demand some time and self-control. It makes sense that if you want to have an easy time of securing a loan when you want one that you will need to have a great credit score, so how can you get one? A lender can review your FICO score and tell a lot from that figure and can make a decision as to whether or not you will obtain the loan you seek right then and there.

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So that you might have a FICO ranking of more than 800, you will almost certainly need a credit history that includes the items below:

• Relatively few inquiries. A couple of checks every year won't have a terrible effect on your FICO score. A large number of credit checks in a brief time period can put a large dent in your FICO score. As we have noted before, an inquiry, such as a credit application, puts a small dent in your score.
• A prompty payment history throughout the last seven years. Ideally, you want your credit report to note no late payments at all - not 30 days, and absolutely not the damaging 90 days late. Prompt payment makes up nearly a third of your score as creditors, when all is said and done, want to be paid promptly.

• Your existing credit card debt doesn't exceed 30-35% of your total debt limit. If you have a $10,000 credit limit on your credit cards, you will not owe more than $3000-3500 at any one time. The credit agencies get panicky when consumers start maxing out their credit limits, as it generally indicates they can't pay their bills.
• A total financial history of 30 years or so. The majority of people with top FICO scores are older, as it just takes a while to demonstrate that you have upper echelon financial worthiness.
• You should have between 4 and six cards. A minimal number of cards will likely not generate adequate financial action and too many will make you a potential risk to over borrow. Four to six is a reasonable number of accounts that someone could actually use in the course of doing business.
• It would benefit you to have a car loan or a mortgage that is current with no delinquent payments.

If you can achieve all of the items listed above, you, too, can have a top FICO score. With smart use of your finances over a period of several decades, you can possess a score that allows you to take care of all of your financial needs. If you consider it, it is not really all that difficult to have good financial health it's simply a measure of paying your bills in a timely manner, over a period of time, and borrowing only when you need it and using it only when necessary.