Does This FICO Score Make Me Look Fat?

download (29)THE ANDROMEDA EFFECT

I’ve heard it and I know you have, pretty people always seem to get a break.

I want to believe the opposite is true, but sadly, ugly people are screwed out of some perks just for being, well, ugly.

THE SKINNY (NO PUN INTENDED)

EVERY experience I’ve had during a traffic stop, no matter my disposition, is tense and I’m approached as if the stop sign or turn signal I omitted meant something personal to the officer.

My omission is followed by a ticketing to warning ratio of several to none. Even after ticketing, I am remanded again, “watch your driving, ya hear?”

My girlfriend on the other hand, fits the Andromeda mold.

She seems immune to the ills of the ticketed masses.

In fact, these “confrontations” become more of a social delay, and result in the officer giving helpful tidbits, and a warning that almost seems care more about her safety from other driver’s careless habits.

Why the score matters

If you want to join the ranks of the faceless ugly masses, try having a low FICO score.

In reality, it only takes a slightly blemished, neglected score to feel the pain of financial rejection.

Like the type of score that comes from not caring much about the facts, turning a blind eye–all while still paying the bills.

Really. I’m not kidding you.

You’ll be screwing yourself out of a ton of unseen perks, and out of your own hard earned cash. They won’t even have the gall or decency to say it to your face.

From credit approvals, to rates, to paying more for just about everything, a poor credit score keeps you down like nothing else financially.

The same product will cost you more. Period.

For example, a $20,000 car will set you back $21,248.95 at 48 months and 4 percent.

The same at 12%? $25,280. That’s a $4,000 difference on the exact same $20,000 car, all because your credit has a mullet.

For a house? It gets downright ludicrous. A 200,000 house, financed for 30 years.

Pretty FICO: 3% interest, pays 103,554.90 in interest alone.

Ugly FICO: 6% interest (good luck even getting that), pays 231,676.38 in interest alone.

That’s 128,000 more in interest!!

Same house, same time. Ugly credit. Pay twice the interest.

Again, this isn’t even looking at really ugly, or even kind of ugly credit either.

It’s looking at slightly blemished credit. If that doesn’t scare you, it should.

You can extend this scenario to everything purchased on credit. That should shock you… even more than looking into the mirror each morning.

With a moderate interest credit card, say 15%, making the minimum payment, you can expect your original balance to DOUBLE in as little as 3-5 years. Still reading?

The good news, your FICO can be sexy… and they said you can’t fix ugly!

NOW, THE IMPORTANT STUFFWHAT DO THE NUMBERS MEAN?

800+

Exceptional, less than 1% of people in this range are likely to be seriously delinquent on payments in the future.

These people are WELL ABOVE the average US consumer’s score, and will experience easy access to credit, and RECEIVE THE BEST RATES from lenders.

740-799

Very Good, approximately less than 2% of people in this range are likely to be seriously delinquent on payments in the future.

These people are ABOVE the average US consumer’s score, and will experience relatively easy access to credit, and MAY QUALIFY FOR BETTER RATES from lenders.

670-739

Good, approximately 8% of people in this range are likely to be seriously delinquent on payments in the future.

These people represent the MEDIAN US consumer’s score, and will experience decent access to credit, and are considered “ACCEPTABLE BORROWERS” by lenders.

580-669

Fair, approximately 27% of people in this range are likely to be seriously delinquent on payments in the future.

These people are BELOW the average US consumer’s score. They are considered SUBPRIME borrowers, and obtaining credit may be DIFFICULT. If these borrowers are approved for a loan, IT WILL BE AT A MUCH HIGHER RATE.

579 and below

POOR, approximately 61% of people in this range are likely to be seriously delinquent on payments in the future.

This is considered poor credit. Most applications for credit will be DENIED. If you are approved for a credit card, it is likely to require a FEE and/or DEPOSIT. A score this low is usually a result of bankruptcy or other major credit problems.

WHAT AFFECTS YOUR SCORE?

35% – Payment History

30% – Amounts owed on credit and debt

15% – Length of Credit History (Don’t close old accounts!)

10% – New Credit (Don’t open new accounts!)

10% – Types of Credit Used.

WHAT DOESN’T AFFECT YOUR SCORE?

Income, length of employment, alimony or child support payments.

WHAT NEXT?

It’s time to check your credit score, make sure it’s accurate, find out how your financial picture is affecting your score, and more importantly, IMPROVE them. 85% of reports contain errors.

Make sure you’re monitoring your credit score and report with at least as much concern as you watch your weight, and then you’ll truly be looking out for number one.

3 Things You Don’t Know About Your Credit Score

download (15)Yet, if you’re like many Americans, just knowing that you have a credit score may be just about all that you know. This is a bad situation, and you need to fix it, sooner than later.

“Why?” you ask. Well, your FICO score is, for better or worse, like your financial DNA. So, while you hopefully know that you have a credit score, you may not know just how important that score is to your life and livelihood. Unlike DNA, however, your score isn’t a number that just takes care of itself. No, you need to take care of it.

Here are just three reasons for making sure that you do.

Your credit score is somebody else’s business.
That’s right: big business. Your score is at the mercy of three privately owned mega corporations, whose business is rating you and your creditworthiness. In fact, it is these companies, or credit bureaus, that create your score in the first place. The “big three” of these national credit bureaus are Experian, Equifax, and TransUnion. This credit – or FICO – score that they assign you ranges anywhere from 300 on the low side to a perfect 850 on the high one.

Bad credit is expensive.

Your credit score can cost you hundreds of thousands of dollars in extra fees if it is less than excellent. You may have heard the saying, “Buy with cash, pay once; buy with credit, pay three times.” This refers to interest, or the cost of borrowing money. There are many other potential costs to bad credit, however. This can lead to hundreds and even thousands of dollars spent on higher premiums for your auto and home insurance.

Background checks aren’t all that potential employers pull.

Your credit score affects your ability to get a job. That’s right: your estimated ability to repay borrowed money (i.e., debt) also can be used to assess your fittingness for a specific kind of job. Although legislation has been introduced to limit the access of prospective employers to your credit score, these are just limitations, not universal exclusions.

Knowledge is power!

Hopefully, you’ve seen by now that your credit score is a big indicator of your financial health. Ignoring a low score won’t make it go away. However, proactively taking the proverbial credit bull by the horns and working at restoring or just raising your credit score is something that anyone can do. You just have to put your mind to it.

Click on the link below to receive free information on how you can take charge of your financial future. After all: your credit is big business… isn’t about time to make it your business? This changed economy means that our financial well-being is ever more in our own hands!