As of April, the United States combined credit card debt sat at a staggering $848 billion, the Federal Reserve reports. While this number has slowly been declining over the past five years, many Americans are still looking for ways to repair their credit and avoid future financial roadblocks.
Financial institutions use a credit scoring model named FICO from the Fair Isaac Corporation. This scoring system looks at many aspects of a consumer’s account, from payment history to the length of credit history, and then it computes the details into a number ranging between 300 and 850. This is your credit score, and a higher number means you’re a lower credit risk.
All loan approvals depend on this score, so it’s important to maintain a high value or increase a low one. The website www.CashNetUSA.com recently released an infographic entitled, “How the FICO Do I Repair My Credit?” that explains the factors that go into a credit score and tips on how you can increase yours.