credit score
Your credit score is adding several things up to get a "score" that helps determine if you will pay back a loan, or how likely you are to do so. However the "score" doesn't always reflect who you really are, and yet it's the main focus for how much you pay, and if you even get a chance to do so. And when you look closer you will see it's very often a score of opportunity. Also, if you have always paid in cash (if I can't afford it, I am not getting it), or haven't bought anything on credit (say a vehicle) for sometime, you may have a lower score, even though you always have "done what's right".
Scores range from nothing to 850. Each range of numbers is rated from "invisible" (below 300), to bad, fair, good, and excellent.
Scores range from nothing to 850. Each range of numbers is rated from "invisible" (below 300), to bad, fair, good, and excellent.
- Excellent: 800 to 850
- Very Good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 300 to 579
To order your free annual credit report from one or all of the national credit bureaus visit AnnualCreditReport.com
or call toll-free 877-322-8228
or complete the Annual Credit Report Request Form and mail it to:
Annual Credit Report Request Service
P. O. Box 105281
Atlanta, GA 30348-5281
Lots of sites promise credit reports for free.
AnnualCreditReport.com is the only official site explicitly directed by Federal law to provide them.
or call toll-free 877-322-8228
or complete the Annual Credit Report Request Form and mail it to:
Annual Credit Report Request Service
P. O. Box 105281
Atlanta, GA 30348-5281
Lots of sites promise credit reports for free.
AnnualCreditReport.com is the only official site explicitly directed by Federal law to provide them.
The first two, and biggest areas of how your score is determined make up 65% of your score.
The areas that are looked at for your score include a payment history (35% of your score) that shows you have made payments in the past, how well you did, and how likely you may be to do that again. And how much of your credit are you already using (30%). Meaning how much are you already spending from your income on making payments, and is there enough left to make the new payment. How much do you already owe and this is called your utilization, or credit utilization.
Next they look at how long you have a history of making payments, what is the history of your score and that is 15%. Anytime you can show a longer history of making payments (on time and in full) the better.
The next 20% is broken into two areas, with 10% going towards what kind of open credit do you currently have is there a mix of things. For example is it all credit cards, or is there a car loan, a home loan and credit cards? And the final 10% is what's new what have you been applying for, looking for - who has been checking your credit and why. This area also includes your most recent account/s too. For example did you just get the truck loan, and new furniture, and open a new card.
The areas that are looked at for your score include a payment history (35% of your score) that shows you have made payments in the past, how well you did, and how likely you may be to do that again. And how much of your credit are you already using (30%). Meaning how much are you already spending from your income on making payments, and is there enough left to make the new payment. How much do you already owe and this is called your utilization, or credit utilization.
Next they look at how long you have a history of making payments, what is the history of your score and that is 15%. Anytime you can show a longer history of making payments (on time and in full) the better.
The next 20% is broken into two areas, with 10% going towards what kind of open credit do you currently have is there a mix of things. For example is it all credit cards, or is there a car loan, a home loan and credit cards? And the final 10% is what's new what have you been applying for, looking for - who has been checking your credit and why. This area also includes your most recent account/s too. For example did you just get the truck loan, and new furniture, and open a new card.
35% Credit History
30% What you currently owe
15% How long have you made payments
10% What kind of debt do you owe
10% How long have you had the open account
This is your FICO score, and the one you want to pay attention to, as it's the one most lenders choose to use.
30% What you currently owe
15% How long have you made payments
10% What kind of debt do you owe
10% How long have you had the open account
This is your FICO score, and the one you want to pay attention to, as it's the one most lenders choose to use.