Difference Between Home Equity Loan and Home Equity Line Of Credit

A home equity loan and a home equity line of credit has many similar facets so it can be confusing sometimes.  For instance, both programs let you borrow up to 85% of the value of your home and both use your house as a collateral.  However, there are some very important differences that you need to [...]

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How Your Credit Score Is Calculated

Fair Isaac (the company that invented the FICO scoring system) does not give out the exact formula for computing your FICO credit score.  However, we do have something to work with—the factors that weigh on your credit and its exact percentages.  Your credit score is calculated using the following five factors.  They percentages is how [...]

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How To Build Good Credit

Credit is something that is very important in our society and is the currency of financial trust.  If you do not have good credit, you have the potential to lose out on a lot of savings, investment opportunities, as well as jobs.  So in this article, we will go over the key points you need to [...]

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How Credit Cards Work: Understanding Credit Cards

A credit card is essentially a loan from a bank that can be taken out at any time during your discretion.  When you use credit, you are effectively taking out a loan against the issuer of the credit card.  Therefore, you have an obligation to pay that debt.  A credit card issuer will impose a [...]

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Tips For Your First Credit Card

Getting your first credit card can be an exciting venture.  To some, it is a passage to adulthood.  You may notice that when you first arrive at college, credit card companies bombard you with offers by having booths all around campus and giving away free stuff.  All you have to do is apply and you [...]

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What Is The Average Credit Score?

The average FICO credit score in the United States is a 687.  The medium credit score in the US is a 723.  Which one is a better determinant of the credit worthiness of Americans?  In assessing credit scores, the medium is a better indicator when assessing the credit scores of Americans on the aggregate.  That [...]

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Understanding the Fico Credit Score Range

The standard FICO credit score ranges from 300-850 and is computed using a mathematical model invented by the Fair Isaac Corporation in 1956 as a vehicle to combat lending default and assess the risk of borrowers. All three credit bureaus (Transunion, Experian, Equifax) use a slightly different version of the FICO credit scoring system.  Regardless, the original FICO [...]

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