It can be hard to know what’s true and false when it comes down your credit score and if you don’t know about the credit repair facts then become more difficult time and make decision. With all of the incorrect information out there, you might feel lost at sea with both reports or scores on how well-off financially speaking are entering in life as an individual who takes charge through utilizing their own personal finances responsibly rather than relying too heavily upon others’ generosity (like parents). But we’re here now; our team has been working tirelessly over recent months helping people learn more about this confusing yet important aspect for ones’ lifetime outlook.
You deserve to know the truth about your credit repair facts! That’s why we’ve compiled all of this information for you. Credit is a very important part in understanding yourself, and it can have an impact on many things such as getting loans or being approved when applying at other companies – so read our article today about credit repair facts if only learn what some common myths are surrounding how someone gets their own score.
Top 5 credit repair facts to know in 2022
1. Your credit score is based on five key factors
Your FICO credit score is the most important factor in whether you’ll be approved for a loan or new card. There are five different factors that lenders use to decide how much we lend, and your personal finances depend on these numbers – so keep them clean!
o 35% – Payment history
o 30% – Credit utilization
o 15% – Length of credit history
o 10% – New credit
o 10% – Credit mix
2. Credit reports are different than credit scores
Talk about the Difference between a Credit Report and Score
A credit report is simply an account of your debts, but it doesn’t include any information on how you handle those finances. A score calculated from this data can tell lenders whether they’ll want to give out more loans in certain categories or not; if someone has good enough scores for rent payments (for example) than buying somewhere new might not affect their likelihood at all because there wasn’t much difference between what was reported versus actual earnings – meaning better accuracy!
3. FICO credit scores range from 300 to 850
Credit scores are used by lenders and financial institutions to determine your borrowing capacity. There’s more than one type of credit scoring model, so you could get a different score from each lender or institution that offers them! Your FICO Score will usually always fall within an range between 300-850 points on the scale though–and don’t worry about what exactly means “closely monitors.”
Your FICO score is like a report card that tells the truth about how well you’ve been doing financially. A high-level overview can give access to new opportunities and loans when needed, but bad scores might make getting them more difficult in some cases!
Here’s an overview of the FICO scoring ranges:
o 800 – 850: Exceptional
o 740 – 799: Very Good
o 670 – 739: Good
o 580 – 669: Fair
o 300 – 579: Poor
4. You have many different types of credit scores
Credit scores vary based on the agency that reports them. The three major credit bureaus all have slightly different information regarding your past financial performance, which means they each report several FICO ratings to lenders with their own set of criteria for what constitutes good or bad payment history in order determine if you’re likely going Mathematically worthy as well!
