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An example of how rates can change, based on your FICO score. These rates are for example use only.
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One of the most important things to determining your financing options is your credit history and FICO score. But many people are unsure what that score is – or how it’s assigned.
Basically, the nation’s three biggest credit bureaus determine credit based on your history of debt, and your payment record for credit cards, student loans, car loans, etc. They also look for tax liens, bankruptcies, and track inquiries for lines of credit.
All that information is plugged into an equation, and generates what’s called your FICO score.
Typically, the better your FICO score, the better the financing rates that will be available to you. (See sidebar for an example.) Of course, not everybody has perfect credit. So just because you don’t have a really high score, doesn’t mean you can’t get the financing you need.
Some lenders will advertise a low, low rate – but only make it available to folks with the highest possible FICO scores. At NECM, we’re different. We won’t mislead you with rates that you can’t get. We’ll work with you – even if you have less-than-perfect credit – to get the best possible financing. No games, no surprises.
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- Keep balances low on credit cards and "revolving credit."
- Pay off debt rather than moving it around.
- Don’t close unused credit cards as a short-term strategy to raise your score.
- Don’t open new credit cards that you don’t need to increase your available credit.
- Call us today and we’ll help you determine your credit rating, and advise you with even more strategies.
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