Improving Your Credit Score

Credit Score

FICO® Scores

Do you have a stellar credit score?  According to the developers of the FICO® score, Fair Isaac Corporation, individuals with great credit seem to have “strikingly similar” credit habits regardless of background or life experience. The FICO® score is the best known and widely used credit score model.

FICO® scores range from 300 to 850. You are considered a high achiever if your FICO® score is greater than 785. But don’t fret if you score isn’t there yet, says credit score advisor for myFICO, Anthony Sprauve.

“Higher credit scores can be the key to achieving some of life’s most important dreams: buying a new car, owning a home, putting a child through college, or taking a dream vacation,” said Sprauve. “The good news is that by understanding and consistently practicing behaviors that can lead to high credit scores, anyone can become a FICO® High Achiever.”

Who are these “High Achievers”?

In a recent press release, myFICO reveals details about people with high FICO® scores:

  • High achievers have an average of seven credit cards including both open and closed accounts.
  • High achievers have an average of four credit cards or loans with balances.
  • One-third of high achievers have total balances of more than $8,500 on non-mortgage accounts; the remaining two-thirds have total balances of less than $8,500.
  • 96 percent of high achievers show no missed payments on their credit report, but of those who do, it happened four years ago, on average. Less than 1 percent of high achievers have an account past due.
  • Even some of those with a sterling FICO® Score may have had some bumps along the way. Approximately one in 100 high achievers has a collection listed on their credit report and approximately one in 9,000 has experienced tax liens or bankruptcies.3
  • FICO® high achievers have a well-established credit history and seldom open new accounts. Their oldest credit account was opened an average of 25 years ago and their most recent credit account averages 28 months old. Overall, their average credit account is 11 years old.

Consistent Behavior is Key

“Because a high FICO® Score is typically achieved over time and takes into account dozens of variables, there are no ‘quick fixes’ for rapidly improving scores or repairing bad credit,” said Sprauve. “Practicing good credit behavior consistently over time and regularly checking your credit report for errors can be instrumental for achieving a high credit score, which can lead to better loan terms and lower interest rates. Achieving good credit health is a long distance event, not a sprint.”

Interested in buying a home or refinancing your existing mortgage? Consult a licensed mortgage loan professional to discuss your personal financial situation. Inlanta mortgage professionals can assess your credit situation, issue pre-approvals, or provide advice on credit restoration. Find a licensed Inlanta loan officer near you.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.