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Credit Score Breakdown

By Ron Trzcinski, 410-935-5844

Real Estate Agent with 410-935-5844 Office 634480

February 24, 2011 06:50 AM

Credit Score Breakdown

The following gives estimates as to how much weight is given to various aspects of one's credit:

1. 15% -- Length of credit history.

2. 10% -- Number and types of accounts opened recently.

3. 10% -- The mix of credit accounts, credit cards, department stores, finance companies, bank loans, etc.

4. 35% -- Record of timely payments on loans.

5. 30% -- The amount and type of outstanding debt.

Credit Score Ranges

720 - 850 Excellent -- The best financing terms and represents the best score range. 720 is typically the score needed to qualify for good credit rates.

700 - 719 Very Good -- Qualifies to receive favorable financing.

675 - 699 Average -- Will qualify for most loans.

620 - 674 Sub-prime -- May qualify but will pay higher interest.

560 - 619 Risky -- Will have trouble getting a loan.

500 - 559 Very Risky -- Probably will be rejected for credit.

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Veronica Krzinska

Zenith Realty - Rosedale, MD

Ron,

This shows why credit is so important and why so many people are being denied.

Feb 24, 2011 07:02 AM

Kathryn Sparks

Zenith Realty - Baltimore, MD

Sometimes it is not good to close an account even if one is not using it.

Feb 24, 2011 07:12 AM

Ron Trzcinski, 410-935-5844

410-935-5844 Office - Cockeysville, MD

Veronica,

Credit is tight, so one's credit score needs to be better than in previous years in order to qualify for a loan.

Feb 24, 2011 07:26 AM

Kathryn,

This is true; the longer that one has an account open, the better it may be assuming that they make their payments on time.

Feb 24, 2011 07:27 AM

I guess that is why timely payments gets a higher weighted value of 35%.

Feb 25, 2011 08:05 AM

Kathy,

You got it. Making the payments is the biggest concern.

Feb 25, 2011 08:12 AM

Kristi Allison

Bel Air, MD

There should be a rating system to determine if banks are qualified to lend money. If they are not, then they should give all of their money to me.

Feb 25, 2011 08:56 AM

Kristi,

That is one of the best ideas that I have heard on Active Rain.

Feb 25, 2011 08:58 AM

Alexandra "Sandy" Pzkowski

What jerk created the credit scoring system in the first place?

Apr 01, 2011 05:36 AM

Sandy,

I don't know, but I think that he was gassed to death.

Apr 01, 2011 05:44 AM

Anonymous

accurate calculator

In case anyone would like a more in-depth description of how the credit score breaksdown, you can read a series I recently wrote about <a href="http://accuratecalculator.com/ways-to-improve-your-credit-score/">Ways to Improve Your Credit Score</a>. Within it is an article that will give an in-depth explanation of the <a href="http://accuratecalculator.com/credit-score-breakdown">credit score breakdown</a>. It'll even tell you how the credit score is calculated.

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May 18, 2011 08:20 PM

#11

Accurate Calculator,

Thank you for the additional information.

May 19, 2011 07:15 AM

Employers should stop looking at credit history when deciding on new hires. Just get people employed.

Jun 21, 2011 05:25 AM

Credit Score Breakdown

Comments(13)

Ron Trzcinski, 410-935-5844

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