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i have always thought my credit was bad,but recently while starting a new checking account they ran my credit and told me my sc

I have always thought my credit was bad,but recently while starting a new checking account they ran my credit and told me my score was 617,they said that was pretty good,what are your thoughts.

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Bill's Answer
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Although a credit score of 617 is not necessarily horrible, I think the bank may be a bit over-optimistic in telling you your score is “pretty good.”

When you say “credit score,” I assume that you are referring to your Fair Isaac score, also known as he FICO score after the company that designed the scoring model, the Fair Isaac & Co. A FICO score of 617 places you in the lower 20% of United States consumers in terms of perceived credit worthiness, meaning that a potential lender will consider you to be a relatively high risk borrower. While you can probably obtain many loans with a credit score of 617, you should expect to pay higher interest rates than the average consumer, and may be turned down for credit by some of the more selective lenders.

There are many steps you can take to help improve your credit score. The most important thing you can do is resolve any outstanding delinquent accounts, then make sure to make all payments to your creditors in a timely manner. Having several accounts with long histories of timely payment should have a positive influence of your credit rating. If you do not have many credit accounts, such as credit cards, you may want to open some new accounts to help you build a positive credit history. Ideally, you should pay off the balance of your credit cards each month, but if that is not possible, at least make your minimum payments on time to help build your credit score. For more information about credit and ways to improve your credit score, I encourage you to visit the Bills.com Credit Resources page, available at Credit Portal. I hope this information helps you Find. Learn. Save.

Best,

Bill

Bills.com

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7 Comments

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  • BA
    Jul, 2009
    Bill
    Employment history is not calculated into a FICO score and appears in credit reports purely for display. I am not aware of any company that relies on that information without other documents to back it up. As a practical matter, it is impossible for credit reporting firms to track the employment of contractors, freelancers, and people who own small businesses who have little or no contact with the reporting firms.
    0 Votes

  • 35x35
    Jul, 2009
    Suzanne
    Thank you! One more question - do the credit card companies and/or credit reporting companies know I am unemployed? I pay my credit card and other bills every month, on time and double the minimum. I've never had a late fee assessed, or any delinquent bills. Thank you.
    0 Votes

  • BA
    Jul, 2009
    Bill
    Check with your state laws to see if credit scores can be used when setting insurance premiums. California, for example, doesn't allow credit history to be used for insurance purposes.
    0 Votes

  • 35x35
    Jul, 2009
    Suzanne
    I just checked my credit score and its 617. I checked it in April and it was 800. I've been unemployed since June 2008, and yes, I've been living on plastic, and yes the banks that got bailed out by "we the people" have hiked my interest rates. Not all of them, but the top 5 banks. I've always had many credit cards, but what I have never had is a mortgage (I'm a renter), or a car (I don't drive). I will never buy a house or never learn to drive. So, if an when I get a job,I will pay off the cards. I paid off ALL my credit cards ($40,000) in Jan 2006, and I will do it again. My question is, why was there a letter in my apartment insurance bill saying they "may" have requested a credit report on me when renewing my insurance. My insurance has gone up $7.00 for the past 3 years. This year its being raised $71.00. I live in a very safe neighborhood and the landlord just installed video cameras in the hallways, so the chances of me being robbed are lessened. Could my insurance carrier raised my premium because of my credit score of 617? Doesn't seem fair
    0 Votes

  • BA
    Dec, 2008
    Bill
    Your credit will be protected, unless you open a joint account and then default on that new account. When applying for a mortgage, the lender will almost certainly pull both of your credit scores and your spouse may impair your ability to get approved for a new loan, but your credit score still remains intact.
    0 Votes

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