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Financing & Loans

FICO Scores & Credit Reports, Financing & Loans

The scores that matter in auto lending

Thinking about getting a new car? Based on all the car company advertising, it would appear it’s a great time to be in the market to buy a new vehicle. All of the big car companies are promoting cash back incentives, 0% financing and other incentives to move that 2015 inventory off the lot.

However, have you also noticed the fine print in the advertisements pointing out that these more favorable financing terms are only available to qualified applicants? And, having a higher FICO® Score is often quoted as one of the key requirements.

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FICO Scores & Credit Reports, Financing & Loans

The scores that matter in mortgage lending

So you’re ready to take on a new mortgage and you’ve done your research. You have been educating yourself about credit scores, the credit process and how lenders evaluate credit for mortgage loan applications as you are getting ready to purchase a new home. And you know understanding your FICO® Scores is really important as they are the credit scores most commonly used in the mortgage loan review process.

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Credit Cards, Financing & Loans

How student loan debt and credit card debt affect your credit differently

If you’ve been juggling a monthly student loan payment with a credit card balance, you might have reasonably wondered at some point how exactly all that debt is affecting your credit. Debt obviously plays a significant role in your credit picture—how much of it you have and how you repay it are two major factors that affect your FICO® Scores, the credit scores used by 90% of top lenders. But how different types of loans and debt contribute to your scores isn’t readily apparent. Let’s clear up some of that confusion: Here are a couple important differences between how student loan debt and credit card debt can affect your credit.

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FICO Scores & Credit Reports, Financing & Loans

How Student Loans Affect Your FICO® Scores

Here are some sobering statistics for anyone who recently graduated from college:

  • 70% of students graduating with a bachelor’s degree are leaving school with student-loan debt
  • The average class of 2014 graduate with student-loan debt owed $33,000—earning them the distinction of the most indebted class ever
  • 2014 graduates face a 8.5% unemployment rate and 16.8 underemployment rate

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Financing & Loans

How Recent College Grads Can Start Building Credit (in 3 Easy Steps)

Establishing credit when you’re just starting out can feel a bit like a catch-22: to establish credit, you need to get credit; to get credit in the first place, you need to have an established credit history. It can be an infinite loop of frustration (one you should get familiar with if you’re a recent grad — to get a job, you need work experience, which you can only get if already have a job . . .).

Luckily, breaking free of this paradox isn’t as hard as it initially sounds if you know where to start and know what to do once you get going.

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