How is your personal credit score factor?
Your credit score is calculated or factored is base on tabulation, calculation, and manipulation of numerical representation of your statistically likelihood to pay the credit that has been extended to you through a creditor, i.e. installment loans, revolving credits, etc! The credit scores range from 300 points is the worst score you can get! To 850 points, the best score period! Your score is a "snapshot" of your credit history that can be changed with passage of time and with new action you take with regard to your personal credit!
It does all depend on you, and how you pay your bills! You can have good credit or bad credit! It's your choice!
For the longest time people and companies tried to find out about the calculation or factoring of credit scores to no avail! Until recently, the credit report calculation or factoring has been a closely guarded secret by FICO, the Fair Isaac Corporation!
Now we can estimate or assume how your personal credit score is put together!
The whole factoring or calculating system is based on Zero percent (0%) or no score to Hundred percent (100%) if you have no score that's mean you do not have any credit for the credit reporting agencies to grade you on! You can still a loan with no credit score, but you cannot with bad credit!
Your personal payment history with the credit reporting agencies is equal to thirty five percent (35%) of your total credit score! These scores will depend entirely on you! Do you pay your credit payments on time? Or you have delinquencies on your credit report? How long you have positive credits!
The amount owed to your creditors is equal= thirty percent (30%) it all depends on how many credit accounts you have! Too many credit cards with high balances will definitely lower your personal credit scores!
The length of your personal credit history is equal to Fifteen percent (15%)
The longer your personal credit history the better for your credit score!
Your personal credit history should be five years old or more with high credit of $5000. Or more and how long since you used certain accounts! If you use your credits regularly and pay it on or before time, then you should have good credit!
Your new personal credits is equal to Ten percent (10%) If you established several credits account in a short period of time; this will represent a greater risk to your creditors, especially if your credit history in not long enough!
Your personal credits in use and the type of credit is equal to Ten percent (10%)
The ideal credit in use is; Two (2) installment loans, i.e., a mortgage loan, a car loan, and or student loan!
No more then Four (4) revolving loans, i.e., credit cards, department store cards, and gas company cards etc...
The balances on your revolving credits should be below thirty percent (30%) of your high credit limits!
Make sure you have no collection accounts; no public records i.e. judgments or liens, no late payments, no foreclosures and or short sales, are on your credit report!
Remember you can monitor your credit report for free at: www.annualcreditreport.com
This is just FYI only!
Thanks.
Adam
Comments (3)Subscribe to CommentsComment