Do I Look Fat With This FICO Score?

THE ANDROMEDA EFFECT

Pretty people always seem to get a break, I’ve heard that and I know you have too.

I’d like to think the opposite is true, but sadly, being ugly disqualifies some people from benefits.

THE SKINNY (NO PUN INTENDED)

No matter how I’m feeling, EVERY traffic stop I’ve been in has been tense, and I’ve always been approached as if the officer was offended by the stop sign or turn signal I didn’t use.

A ticketing to warning ratio of many to none is followed by my omission. I receive another remand even after receiving a ticket, with the instruction to “watch your driving, ya hear?”

In contrast, my girlfriend fits the Andromeda stereotype.

She doesn’t seem to be affected by the problems of the ticketed crowd.

In reality, these “confrontations” end up being more of a social pause, with the officer providing helpful advice and a warning that almost seems to care more about her safety from other drivers’ careless habits.

Why the score matters

Try having a low FICO score if you want to join the ranks of the nameless, ugly masses.

In actuality, all it takes is a minor blemish or neglected score to make you feel the pain of financial rejection.

like the kind of score you get from not paying attention to the details and keeping your blinders on while still managing to pay the bills.

I’m not kidding, either.

You’ll cheat yourself out of a ton of unanticipated benefits and of your own hard-earned money. They won’t even have the gall or decency to say it to your face.

A low credit score hinders you financially more than anything else, preventing you from receiving credit approvals, getting the best rates, and paying less for almost everything.

You’ll pay more for the same item. Period.

For instance, at 48 months and 4 percent, a $20,000 car would cost $21,248.95.

$25,280 is the amount at 12%. For the exact same $20,000 car, there is a $4,000 difference, all because of your credit’s mullet.

It becomes utterly absurd when applied to a house. a home valued at $200,000 with a 30-year loan.

Pretty good FICO: 3% interest pays 103,554.90 just in interest.

Embarrassing FICO: 6% interest (good luck even getting that), pays 231,676.38 in interest alone.

128,000 more in interest is that!!

Time and place are the same. Pay twice the interest on this ugly credit.

Once more, this credit isn’t even looking really bad or even bad at all.

It is examining credit that has a minor blemish. If that doesn’t frighten you, it ought to.

This hypothetical situation can be applied to any credit-based purchase. That ought to surprise you… even more than looking into the mirror each morning.

Making the minimum payment on a credit card with a moderate interest rate, let’s say 15%, will cause your initial balance to DOUBLE in as little as 3-5 years. Still reading?

The good news, your FICO can be sexy… and they said you can’t fix ugly!

NOW, THE IMPORTANT STUFF

WHAT DO THE NUMBERS MEAN?

800+

Exceptional, less than 1% of people in this range are likely to be seriously delinquent on payments in the future.

These people are WELL ABOVE the average US consumer’s score, and will experience easy access to credit, and GET LENDERS TO PROVIDE YOU WITH THE BEST RATES.

740-799

Very Good, approximately less than 2% of people in this range are likely to be seriously delinquent on payments in the future.

These people are ABOVE the average US consumer’s score, and will experience relatively easy access to credit, and MAY QUALIFY FOR BETTER RATES from lenders.

670-739

Good, approximately 8% of people in this range are likely to be seriously delinquent on payments in the future.

These individuals are “ACCEPTABLE BORROWERS” in the eyes of lenders and represent the median US consumer in terms of creditworthiness. They will have reasonable access to credit.

580-669

Fair, approximately 27% of people in this range are likely to be seriously delinquent on payments in the future.

These individuals score BELOW the typical US consumer. They are regarded as SUBPRIME borrowers, and getting credit might be challenging for them. If a loan is granted to these borrowers, IT WILL BE AT A MUCH HIGHER RATE.

579 and below

POOR, approximately 61% of people in this range are likely to be seriously delinquent on payments in the future.

Poor credit is what this is. The majority of credit applications will be rejected. If you are granted a credit card, a fee and/or a deposit will probably be needed. A score this low is typically the result of bankruptcy or other serious credit issues.

WHY DOES YOUR SCORE DETERMINE?

35% – Payment History

30% – Amounts owed on credit and debt

15% – History of Credit (Don’t close old accounts!)

10% – New Credit (Avoid creating any new accounts!)

10% – Types of Credit Used.

WHAT HAS NO IMPACT ON YOUR SCORE?

Income, length of employment, and alimony or child support obligations

WHAT NEXT?

Now is the time to check your credit score, make sure it’s accurate, determine how your financial situation is affecting it, and most importantly, IMPROVE them. 85% of reports contain errors.

You’ll be truly looking out for no. 1 when you monitor your credit score and report with at least as much care as you do your weight.

The only thing left after that is to prepare for all the catcalls, you sexy beast.