Young People & Debt

Written by Matthew Crist


Most young people who are just starting out are facing an uphill battle against debt. Credit cards, student loans and car payments are just a few ofrepparttar items that young people are facing nowadays.

Credit cards arerepparttar 140876 number one cause of debt for people age 18-30. It starts in college with card number one, which then progresses into five or six credit cards to buy new clothes and beer. The average college student graduates with an average of $4500 in credit card debt. This situation is multiplied by higher interest rates on those college cards.

Credit card companies,repparttar 140877 smart people that they are, lessonrepparttar 140878 restrictions on college students getting credit cards in exchange for charging a higher interest rate on those cards. One ofrepparttar 140879 first things young people can do is try to find lower interest credit cards. Sites, such as http://creditbus.com, allow users to search for and apply for low interest credit cards. By obtaining a lower rate, card holders can get more principle paid off sooner.

Fair Isaac Corporation Credit Or FICO Score

Written by Roy Thomsitt


As I am not fromrepparttar US, I had no idea what FICO meant before researching it. FICO stands for Fair Isaac Corporation, a company based in California. FICO, put simply, is a person's credit score. A credit score can be used by a potential lender in making a judgement on whether to grant you credit or not, for example when you apply for a new credit card or home mortgage. Therefore, if you are inrepparttar 140828 US,repparttar 140829 FICO score is very important to you. What Does a FICO Score Do?

A FICO score places a value onrepparttar 140830 types of credit accounts you hold or have held, and your credit history in maintaining those accounts. The FICO score scale ranges from 300 to 850, withrepparttar 140831 majority of people inrepparttar 140832 United States inrepparttar 140833 600 - 850 range.

Factors Which Affect Your FICO Credit Score

There are 5 factors in all which determine your FICO credit score:

1. Your payment history.

This counts for a very significant 35%--the most ofrepparttar 140834 FICO score factors. As you would expect, paying your bills on time is gets you a good score, while paying them late on a consistent basis is will mark down your FICO score. If you have had debts referred to a collection agency, that is worse still, while declaring bankruptcy isrepparttar 140835 worst of all.

2. How much you owe.

Another obvious factor that FICO will take into account in arriving at a credit score. This accounts for another 30% of your total FICO score. It is not just what you owe already that affects your FICO score. Also taken into account isrepparttar 140836 amount of credit available to you. For example, if you have a credit line of $5000, but have so far only used $1000, that will be taken into account.

Your total amount of credit will be totalled, and compared to your annual income. So, loans such as car loans, mortgages, credit cards, store cards, will all be added together. Those who use most or all of their available credit will get a lower rating for this part ofrepparttar 140837 FICO score calculation.

3. Length of credit history.

Cont'd on page 2 ==>
 
ImproveHomeLife.com © 2005
Terms of Use