The Kitchen Table

Want to qualify for the lowest interest rates when applying for auto, mortgage or personal loans? Then you'll need a top-notch credit score. Most lenders today rely heavily on your three-digit credit score to determine what interest rate you might qualify for. Generally speaking, lenders reserve their lowest rates for those borrowers who have a credit score of 740 or higher on the FICO credit scoring model.

Good news for those of you who are still working towards that 740+ credit score, LPI doesn’t use the credit score model to determine credit eligibility! Instead, LPI looks at your job time, residence time, and your ability to repay the loan back. Having an account with LPI is a great way to help you build and improve your credit score too. We report to Equifax and TransUnion monthly, so every time you make that set monthly payment on time, it shows up positively on your credit report. The most important factor in building credit is PAY YOUR BILLS ON TIME, it accounts for 35% of your credit score. Delinquent payments and collections have a major impact on your score, so STAY CURRENT!

Another 30% of your score is based on the amount you owe on accounts. Keep your balances low on credit cards and other revolving credit. Focus on paying off debt instead of moving it around. Don’t close unused credit cards, and don’t open new cards that you don’t need just to increase your available credit.

There is no quick fix or overnight secret formula to improve your credit. It takes time and determination. Be a smart consumer, pay your bills on time and cut down on your credit card debt. Those two actions alone make up 65% of your credit score and are the keys to boosting your credit score.

*Employees of LPI Loans and our affiliates are not attorneys and LPI Loans DOES NOT provide any legal advice and users of this web site should consult with their own attorney for legal advice.