Know the Score on Credit

Your FICO score can save, or cost you, big time when you want to buy a car, a house or apply to a credit card. Some items that will affect your score:

1. Closing existing cards can drop your score as much as 60 points for a year
2. Using over 70% of your credit limit can cost you 50 points
3. Go over your credit limit costs you 100 points
4. Pulling a credit report cost 5 points

Most negative information remains on the report for seven years; bankruptcy for 10. Fixing the problem doesn't help either. If you went over the limit and then paid it down, the damage is done, and so is your FICO score.

FICO scores range from 300 to 850. Stay over 720 and you can control the financial world. 

As always, please call (949) 683-8111 or email us at info@southcountycpa.com if you have any questions. We are here to help.