Your Finances

We want to help you improve your credit by providing information, assistance and creating a path to a brighter credit future.  With proper attention paid to the state of your credit, you could very realistically lift yourself out of sub-prime territory.  Paying your bills on time, and not overextending yourself when it comes to loans and credit cards is just the first of many steps.

While you may have been turned down by others before finding MarkOne Financial, in a short period of time, with timely and on-time payments you could improve your credit profile. This may help you take advantage of programs only offered to people with higher credit scores.

Here’s a few topics to get you on your way to understanding and improving your credit.  Also know that our Customer Service Representatives are here to assist with any MarkOne Financial account questions.  Just call us directly at (866) 849-1792.

What Is A Credit Score

Credit ScoresCredit scoring is a system creditors use to help determine whether to give you credit, and how much to charge you for it. Information about you and your credit experiences, like your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit report.

Read more about credit scores and credit reports

If you’ve ever applied for a credit card, a personal loan, or insurance, there’s a file about you. This file is known as your credit report. It has information on where you live, how you pay your bills, whether you’ve been sued or arrested, or have filed for bankruptcy.

Using a statistical formula, creditors compare the information in one’s credit report to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor. A total number of points — a credit score — helps predict how creditworthy a person is; that is, how likely it is that one will repay a loan and make the payments on time.

The credit report and credit score information is often used to evaluate and approve applications for credit, insurance, employment, or vehicle purchase or lease. Having a good credit report — a good credit score — generally means it will be easier for you to get loans and lower interest rates.

 

Understand And Improve Your Credit Score

To arrive at the score, values are first assigned to the variables contained in your credit report; mathematical processes then calculate the all-important number, assigning each variable a weight that reflects its relative importance. The most commonly used assessment is the Fair, Isaac & Co., or FICO, score.

FICO Factors DiagramAccording to FICO’s Web site, FICO scores range from 300 to 850. The higher your score, the better your chances for getting optimum rates on your loan. The lower your, you risk loan denial or face higher rates than borrowers with higher credit scores.

Five factors play a part in FICO’s score calculation: payment history, outstanding balances, length of credit history, new credit and types of credit used.

Read more about the five credit score factors

1) Payment History. Your payment history impacts about 35 percent of your total FICO score. Details regarding payments made on credit cards, retail charge cards, installment loans and mortgages play a part here. How timely have your payments been? How much do you owe? If you’ve made late payments, how recently did these payments occur? If you’ve got few or no late payments, your score will be improved. Also, recent late payments will hurt your score more than those made years in the past.

2) Outstanding Balances. About 30 percent of your score is impacted by the amounts you’ve got outstanding to creditors. Owing a lot on many accounts won’t necessarily hurt your score. If you’re at or near your limit on your credit cards and other “revolving credit” accounts, though, your score will be compromised.

3) Credit History. The length of your credit history determines about 15 percent of your score. If you’re just starting to build your credit history, there’s not much you can do to improve your standing in this area over the short term.

4) New Credit. New credit acquired determines about 10 percent of your score. Applying for a slew of new credit is one of the easiest ways for people to mar their rating. The FICO model evaluates how many new accounts you’ve established, how long it’s been since you’ve opened a new account and how many recent credit inquiries have been made by credit reporting agencies. Self-initiated credit report requests will not impact your score.

5) Credit Type. Ten percent of your score hinges on the types of credit you use. What matters here is your mix of installment loans, mortgages, retail accounts, credit card and finance company accounts. According to FICO, this factor is given less weight if it has full information on you regarding the other four factors.

 

Get A Copy Of Your Credit Report

Knowledge is power.  It’s a good idea to check your credit report, which you can do every twelve months for free.  To request a copy of your report, call 1-877-322-8228 or visit www.annualcreditreport.com.

Read more about getting your credit report

In some situations, such as when you are denied credit, you may be able to obtain additional copies for free.  In other situations, if you would like to obtain a credit report more often than once a year, you can do so for a small fee by contacting any of the three major credit reporting agencies listed below.

Experian
P.O. Box 2104
Allen, TX 75013
Phone: (888) 397-3742
www.experian.com

Equifax Credit Information Services
P. O. Box 740241
Atlanta, GA 30374-0241
Phone: (800) 685-1111
www.equifax.com

TransUnion Corporation
P. O. Box 1000
Chester, PA 19022
Phone: (800) 916-8800
www.transunion.com