The time that The Budgetnista presented a virtual chat earlier in the year she had a topic related to credit scores.
According to The Budgetnista notes in the video, the credit score is an number that is calculated upon a formula that utilizes the information on your credit file. The result is a precise estimate of the likelihood that you will be able to pay your charges.
A straight-shooting and shrewd financial instructor it is not surprising that the Budgetnista went deep into the elements that make up your credit score and the reasons it’s so important for your financial health and well-being.
According to her the credit score of yours is calculated using five key components, which have varying degrees of importance. These factors affect your credit score and include the history of your payments, the amount you owe as well as the length of your credit history as well as inquiries and credit mix.
Each of these categories is considered when determining your score. The outcome of any one event or factor can determine it all.
Ratings of Credit and Health in the Financial Market
Credit scores are essential when you’re considering applying for any loan. If you’ve received an auto loan, credit card or automobile insurance price you paid was directly linked with your score on credit.
The better your score, the better consider lending to lenders.
The ones who have the best scores receive the best interest rates.
The Budgetnista provides a detailed explanation of what constitutes a quality “FICO Score” which is an exclusive tool developed by FICO, a company for data analytics. FICO.
FICO’s aren’t the only credit score, but it is among the most commonly used measurements used by lenders to evaluate the level of risk associated with dealing with the borrower.
What are the ways that lenders use Credit Scores?
Your credit score conveys the concept that you are at “risk.” That’s because credit scores are utilized by lenders to evaluate the level of risk associated with conducting business with the creditor.
If you’ve been making the bills in time over the last 25 years, you’re probably an easy person to lend money to. Contrarily, imagine that you opened your very first credit-card years ago, and have made four late payments over the time. Your credit card balance is currently at your credit limit. You’ve requested credit for a new account four times over the past six months. Based on this you’ll have less credit score and will be considered to be at a higher risk.
Credit scores can and will alter. Achieving a higher credit score typically requires time and perseverance. There isn’t a “quick fix” for damaged credit.
About the Budgetnista
Aliche has written the latest, New York Times Best Seller Get Better with Money. With the “Live Richer Movement”, Aliche has helped more than 1 million females (Dream Keepers) collectively save over $225 million and paid more than $200 million dollars in credit. An New Jersey native, Aliche was key in helping to get The Budgetnista Law (A1414) adopted in January of 2019, which made financial education compulsory for all middle school students across the state. She has appeared in Good Morning America, TODAY show, PBS, TIME, The Wall Street Journal, Reuters, ESSENCE, FORBES, Fox Business, MSNBC, CNN/HLN, Black Enterprise and other major media outlets.
Credit Score: Next Steps
GreenPath was thrilled to join together to work with Tiffany Aliche who shares similar methods to ours to help people save money to improve their credit scores and repay the balance of their debt.
GreenPath’s certified credit counselors with NFCC accreditation will guide you through a no-cost examination of your credit report. We’ll help you understand how to look through the report, and explain the process of credit scoring, and will answer any questions you may have.
The complete archive recording tells The Budgetnista’s inspiring story – and her commitment to GreenPath which is a trusted non-profit source for 60 years.