California Bad Credit Loans - Exploring FICO Scores

An individual’s credit score is a number that ranges from 850 (perfect) to 300 (very poor) and is used by financial establishments to judge the degree of hazard of a borrower. Lending establishments utilize credit scores to determine interest rates and credit bounds for a borrower. A borrower’s credit score is based on a number of factors within a credit report. By far, the most popular credit score is FICO, which is determined by the Carnival Isaac Corporation. The three major American credit reporting agencies (Equifax, Experian and Trans Union) all usage fluctuations on this scoring expression under different names, the best-known of which are the Beacon score and the Emperica score.

Determinants of a FICO Score --

• On clip (or late) payment of financial duties and debts – 35%

• Ratio of current rotating debt (ex: credit card balances) to the sum available rotating credit (ex: credit limits) – 30%

• Length of clip of credit history -- 15%

• Types of credit used (installment, revolving) –10%

• Credit degrees obtained in past – 10%

(Note: Current income and employment history make not act upon a FICO score. Other factors can impact a borrower’s FICO score. Any outstanding balance owed to a tax lien, tribunal judgement etc. volition negatively impact the score. Excessive credit card accounts or consumer finance accounts will similarly lower the FICO score. Finally, tons of recent credit checks will lower the score.)

California Bad Credit and FICO

If you are below a 560 FICO score, you are considered to have got bad credit. Bad credit in states such as as California do it hard to get mortgage loans that are typically in excessive of $100,000. Private money lenders are often the lone lenders that volition loan to borrowers whose FICO score is under 600. However, for borrowers with a bomber par FICO score, there are companies that volition work with you to better your FICO score.