Another tidbit of info on the factors of your Credit Ranking Score. Yes, instead of thinking it's a score on you individually and your character.
What is a credit score?
It is said that credit scores may range from around 300 to 900 but I've always asked around and being in this industry I've only physically seen these scores:
Excellent credit = 720 and 870
Good credit = 660 to 719
Fair credit = 620 to 659
Bad credit = 619 and 320 (anything below usually shows as no credit)
Credit scores are generated from three major credit bureaus - Equifax, Experian and TransUnion doing statistical algorithm to calculate your credit score using the basis of the Fair Isaac Corporation, which is referred to as FICO scores. Recently the three bureaus have created a common score call the Vantage Score.
Think of it as a comparison to others in within these estimated basic factors.
35% - Your Payment History Compared to Others
Now this is the length of your positive credit history with the consideration of how long you have gone without a negative item against that. Negative items are severe delinquencies / unpaid debts, bankruptcies or foreclosures.
30% - Your Amounts that you Currently Owe
Whether its past due delinquencies or too many credit accounts with a high ratio of credit balances to credit limits are a negative. The term of payments in each account(s) is also a huge factor.
15% - Length of your Credit History
Your length of credit history, length of time specific accounts have been open, and the duration of time since each account was last used.
10% - New Credit Lines
New debt and constant opening of accounts and number of inquires.
10% - Types of Credit Used
Type of credit such as an installment loans (mortgage payment, auto loan) and "true revolving credit" from banks is considered better for your score.
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