Understanding Your Credit Score
Most people remain unaware of their credit scores and how they can affect loan approvals. This lack of knowledge can lead many people to fall into financial trouble and debt. Your credit score, otherwise known as a FICO score, is a number between 300 and 850 that reflects your ability to repay debt. In general, the higher the number is, the more likely it is that an individual will receive a loan from a lender.
Credit scores can be a tricky financial area for many people. If you wish to learn more about credit scores and what they mean, contact experienced Florida bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, at (239) 237-0675 today.
Calculating a Credit Score
Many individuals are unsure of how their credit score is calculated. Your specific credit score number comes from your credit report and is compared to millions of other Americans’ financial information. The five categories used to determine your credit score include:
- Payment history, which makes up the largest portion (35%)
- Total indebtedness, or all of your accumulated debt, that makes up 30% of your credit score.
- The length of your credit history, which totals 15% of your credit score
- Your mix of credit cards, loans, and other forms of credit that make up 10% of your credit score
- New credit and loan requests which compile the last 10% of the score
If you have a low credit score from large amounts of debt, filing for bankruptcy can help you discharge or repay your loans so that you can start anew with building your credit score.
Contact Us
It is important to understand your credit score, because if you do not, you could quickly fall into financial hardships. For more information about credit scores and their relation to outstanding debts, call knowledgeable Florida bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, at (239) 237-0675 today to discuss your situation in further detail.
