FICO, which controls the score for credit history reveals clues about the biggest mistakes that can be made to lose vital points of view to buy a house or a car. So far everything was suspected, but finally confirmed how and why they may lose points or not in this complicated world of credit. FICO, the company that establishes and monitors the scoring system to determine the financial status of individuals last week gave a few keys to have a good credit history, something fundamental in American life if we are to ever buy house, car or anything else in a department store. As revealed, a bankruptcy can be the worst that can happen in a matter of scores, with a decline of 240 points in one blow. After that, a foreclosure is the second worst on the list, something which involves a punishment of between 140 and 160 points. “I hope this information helps people understand better the FICO scores and the value to avoid major mistakes,” FICO said spokesman Craig Watts. “To have and maintain a good credit history is not complicated.
Just pay your bills on time, maintain a low debt level. It is also important not to exhaust all the available credit. Thus, if the credit card in question gives the user a limit of $ 1,000 per month, you should not use all that money every month as FICO penalized with between 10 and 45 points for every time you do. Of course it all depends on how good your credit score for each, ranging from 300 to 850 points at best. If it is good, the greater the drop in points. So quiet those without good credit or shortly managing credit cards, because the punishment will be less in case they incur late payment or any other “deadly sin.” On the contrary, it is known that if you pay credit cards on time and little debt accumulates, the credit can go through the roof, which can be decisive in achieving a credit at a low rate. And although much remains to be learned about how to operate credit cards, at least these data shed some light on the consumer.