Video Guide: Understanding Your Credit Score
A credit score is a 3-digit number based on several factors from your financial activity. It’s used to determine your creditworthiness for things like a mortgage, auto loan, or credit card.
FICO creates what’s known as a FICO Score, the most widely used credit scoring model today. While there are different versions of the FICO Score, they generally consider:
- Payment history (about 35%)
- Amounts owed (about 30%)
- Length of credit history (about 15%)
- New credit (about 10%)
- Types of credit used (about 10%)
The importance of each factor is measured in relation to the others.
FICO scores typically range from 300 to 850, with 850 being the highest possible score. Most lenders use some version of a FICO Score when making credit decisions.
Know your credit score and protect it by making wise financial decisions. We can help—give us a call today.
Whiteboard Videos that are Turnkey for Medicare insurance, Reverse Mortgage, Financial Advisors, Loan Officers. Social Media posts for Facebook, LinkedIn, TikTok, Instagram!
*******
Learn how videos like this attract your ideal client through digital marketing on the internet, click here.
Read our other blog posts and watch more videos here: