Bank Of America Credit Card Refer A Friend – Instant Credit Boost

I’m sure you’ve heard the term credit score in the past. It’s that 3 digit number that follows you & your financial life every where you go. You need it to get approved for loans, credit cards, apartments, home loans & more! And since you never truly see it, it’s typically “out of sight, out of mind”– however this number is something that needs to be taken severe.

Though none people like it, the truth that a credit score is so essential to almost everything we do economically is exactly why we said it has to be taken severe. It can take years to develop a good score and just a day or more to bring the entire thing crashing down.

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Luckily, there’s things you can do to protect and educate yourself on the topic. From tricks to give you a near-instant boost to your score to understanding what a credit score even is from a fundamental level, we’re going to walk you through this step by step. Get ready to take control of your financial liberty at last!

What Exactly Is A “Credit Score”?

Simply put, a credit score is a number in between 300– 850 that depicts a customer’s (you) credit reliability. The higher the score, the better the individual aiming to obtain money or open a charge card seeks to the potential loan provider. A credit score is based on credit history, which includes:

  • Number of open accounts
  • How much debt is currently open
  • Repayment history
  • Number of hard inquiries
  • Age of credit history
  • Any derogatory marks

Lenders utilize credit scores to assess the possibility that an person will pay back loans on time and completely (or as determined in the loan agreement). It’s worth noting that it’s not constantly a smart concept to close a charge account that is not being used due to the fact that doing so can decrease your credit score by affecting your credit rating age & amount of open credit offered to you.

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The credit score model was developed by the Fair Isaac Corporation (commonly called FICO), and it is utilized by financial institutions like banks. While other credit-scoring systems exist, the FICO score is without a doubt the most commonly used.

Having issues with your credit? There are a variety of ways to improve your score, including repaying loans on time, settling charge card every month, and keeping debt low. We will enter into raising your credit score further in the article.

How Do Credit Scores Work, Anyway? Bank Of America Credit Card Refer A Friend

A credit score is a substantial aspect of your financial life. It plays a key role in a lending institution’s choice to state “yes” or “no” to your loan or credit card application. For instance, people with credit report listed below 640 are normally thought about to be subprime debtors.

Loan provider typically charge interest on subprime home mortgages at a rate higher than a standard home loan in order to compensate themselves for handling a high danger borrower. Depending upon how low your credit score is, they could also require a shorter payment term or a co-signer.

On the other hand, a credit score of 700 or more is generally considered excellent and could lead to you (the borrower) receiving a lower rate of interest. On loans like mortgages, a somewhat slower rates of interest can end up conserving you 10s of thousands of dollars over the payment term!

Scores greater than 800 are considered outstanding. It’s worth keeping in mind that while every financial institution specifies its own varieties for credit scores, the following FICO score range is often utilized:

  • Excellent: 800 to 850
  • Very Good: 740 to 799
  • Good: 670 to 739
  • Fair: 580 to 669
  • Poor: 300 to 579

In short, your credit score is a mathematical analysis of your credit reliability and directly affects how much or how little you may pay for your credit. Your credit score can also identify the size of a down payment required on products like phones, utilities, or apartment or condo leasings.

How A Bad Credit Score Is…Bad

As discussed previously, a bad credit score is anything below 670. If you want to get more specific, a score ranging between 580-669 is considered “fair”, while anything in between 300 and 579 is considered “poor”. This is going off the FICO scoring that’s most frequently utilized.

Not sure what your credit score is? Click here to get your score from all 3 major bureau’s. It’s free!

Having a bad score can stop you from doing a lot of things. This consists of getting approved for better charge card, mortgages, apartment or condos, personal loans, organization loans, and more.

Plus, any loans or credit cards you do get authorized for will be a lot more costly (as mentioned above). This is due to the fact that lenders charge much greater rate of interest to those they deem “high danger” in order to balance out the extra danger they feel they’re taking by lending you cash.

How do they get more expensive? By charging greater rates of interest. For instance, if you take out a $10,000, 48 month loan on a cars and truck with a 3.4% rates of interest, you’ll pay about $704 in interest over the course of the loan. If you secured that same loan with a 6.5% rate due to bad credit, you ‘d pay about $1,376 in interest. That’s almost double!

What Can I Do About A Bad Credit Score?

Think you have a bad score? Do not fret– there’s good news: credit report aren’t static! Your score will alter when the info in your credit report modifications. That suggests you can take control of your financial health now by making changes that will favorably impact your credit score in time. Here’s a few things anyone can quickly do to begin:

  1. Take Advantage Of FreeScore360 by ScoreSense – If you want to improve your score, you need to be able to check it regularly & be sure you’re getting accurate data. That’s where FreeScore360 comes in. They allow you to easily check your score at all 3 major bureau’s, as well as providing daily credit monitoring, alerts, and $1 million in identity theft insurance. Plus you can try it for free here!
  2. Secured Credit Card – Just make an initial money deposit (which usually becomes your credit line). You then use the card like a regular charge card and develop your credit. Make sure to always pay your expense on time and keep the balance near $0 as possible.
  3. Credit-Builder Loans – The loan amount is launched back to you after the loan is settled. Always ensure the lender ( generally a cooperative credit union or neighborhood bank) will report your payments to the three major credit bureau’s.
  4. End Up Being an Authorized User – If someone with a great score & a long record of on-time payments and low credit utilization is willing to include you as an licensed user to their credit card, your credit will benefit by having that card contributed to your report.

When it concerns taking control of your financial resources and improving your credit score, you have alternatives. Use FreeScore360 to learn what your real score is, then sit down and make a plan of attack. Improving your score will take time, however it doesn’t need to be hard! Excellent financial habits like paying off your charge card on a monthly basis will take you a long way toward that financial freedom.