Call Now
(916) 780-7005
Click Here
Free Case Analysis
MENU
  • Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
    --Donna
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

What Is A Credit Score Anyways?

Creditors for millennia have sought ways to determine the likelihood of debtors paying back their loans. Until a the 1950’s, there was no standard, objective means of evaluating credit. Most lenders would interview potential borrowers to try and “get a feel” for if the person was likely to repay his or her debt.

Creditors starting moving towards a more objective evaluation when Bill Fair and Earl Isaac created a statistic-driven credit scoring system in the 1950’s. This system underwent a lot of revision over the decades, evolving into the modern FICO score. Creditors preferred this objective scoring system to the subjective lending process of centuries past. Today, nearly all creditors rely heavily on the FICO score when considering issuing a loan.

The FICO score consists of five parts – payment history (35%), credit utilization (30%), length of credit history (15%), credit mix (10%), and new credit (10%).

  • Payment history: FICO keeps tabs on your payment and bill history. Fall behind on a credit card and your credit score is sure to drop.
  • Credit utilization: In plain English, this means how much you owe. Too much or too little debt will hurt your score.
  • Length of credit history: The longer you have open credit, the better your score.
  • Credit mix: The sort of debt you have affects your score. Diversified debt is typically better than a single debt.
  • New credit: Opening new credit accounts will hurt your score. New accounts lower your average account age, which has a negative effect on your score.

With all that being said, I personally am not a fan of the FICO score. I’m sure it does a pretty good job establishing one’s likelihood to pay a debt, but the ability to pay a debt isn’t a good indicator of overall financial health. People who win with money avoid debt, because debt drains your income which prevents you from saving, investing, and giving. You need to be saving, investing, and giving if you want to win with money.

If your interested in speaking with a bankruptcy attorney in the Stockton area, give our office a call for a free consultation.

Categorized in: