What does the FISCO score mean?

so i just got my credit assessed. I am a student, 19.

my fisco score was between 600-630. What does that mean for me. I was without a job for a few months, and so I wasn't able to make a few payments on my student VISA... and I have an OSAP loan.

also how can i improve this score, and how long would that take? since im not 700+ does this mean i will be denied for credit if i apply for it in the future?

I think it's actually a FICO score (named after the inventor).. it's just basically a number rated to you.. based on how likely you are to pay your bills.

The higher the score, the more likely you are.. and the more appealing you are to creditors.

The best way to increase your score is to ask your credit card company for increases in your spending limit (every 6months-1yr) and then just SPEND SPEND SPEND.. well that and MAKE SURE you pay the minimums on cards.. if not even pay them off.

Some creditors don't make notes of missing a payment.. but I have one credit card that if I am a couple days late on a payment, they shoved that information straight on my credit report. Meanwhile a second credit card doesn't.

I would think the lower your score, the more appealing you are to creditors, since the less likely you will make a payment on time, so they can earn their 20% interest rate.

Because I'm sure the financial institutions purchase insurance to cover the losses attributed to non-payment forfeitures.

Originally Posted by Panda_Bear

I would think the lower your score, the more appealing you are to creditors, since the less likely you will make a payment on time, so they can earn their 20% interest rate.

Because I'm sure the financial institutions purchase insurance to cover the losses attributed to non-payment forfeitures.

Interesting concept... but

Typically if someone doesn't pay their bills.. they will go into bankruptcy.

Now how does a creditor win on that plan?

Look if a rich person with a great credit score wants some money.. I will give it to them.. now if they don't use it, what's the difference to me? What if I gave out all my money to poor people with bad credit.. they go blow the cash on stupid junk, then when the bill comes, they file bankruptcy..

Either way, people typically hold a balance on lines of credit (whatever form) anyway...

And if you don't like the 20% interest you have.. use your lovely FICO score and go bargain with some lender to get a reduced rate.. like maybe prime +4.

The exorbant interest rates are to re-coup the losses they have for charged-off accounts (Accounts that they can not claim the money they lent). With that being said, they get way more in return then what they lose!

You start with a medium score the first time you apply for a credit card. As v00d00 mentioned, each time you use your card and successfully make a payment, your score can and will go up.

However if you don't make payments, it will go down.

Why is this bad? Well whenever you apply for a mortgage or another form of credit, you may be shunned if your score is too low.

That's why it's good to get a credit card as a student and build up a good credit history!

Just don't miss any more payments And spend and make more to get your rating up!

Cheers

Also.. if for *ANY* reason you can't ever pay some kind of outstanding debt with *ANY* lender (well disregarding drug dealers), always get ahold of them as soon as possible and tell them your situation..

In most cases they will understand and PROBABLY offer some kind of terms to help both you and them.. for instance a good credit card company may offer you a reduced minimum payment while you are not working... some lenders also have interest relief programs (for instance OSAP) where if you are unable to pay the debt because your income is too low, they will cover your interest and stop repayment until you are working again.

Of course all programs are only available for limited lengths of time.. but it will definitely save your credit.. missing a few payments will really get ya. I'm surprised you still have your credit card (if you do) after missing several payments.

Either way, that will reflect negatively on your credit.. so take some time and start repaying minimums ON TIME!

The highest FICO score you can have is 850 and the longer your credit history, the higher your score (assuming you make all your payments on time)....this score determines a lot of things with regards to loans...for instance, the higher the score, the lower your interest rate will be for loans....it also determines whether you are granted a cc or not, you don't need an excellent score to get a credit card (i think 600+ is sufficient), but the higher the score, the higher your limit will be....

always, check your credit history atleast once a year to ensure that your identity is not stolen and everything is reported correctly....

Btw, on credit cards, the majority of the income comes from a percentage they make off every purchase you put on the card. Of course, they also make out like bandits on interests charged, but they would still be happy to have you as a big spender if you pay on time every month.