Five Vital Components To A Credit Score
June 24, 2009 by Clifford Daniels
Filed under Credit Articles
Credit scores are decisive aspects of our fiscal lives. Having a high score can assure that you will be able to acquire credit and have a more constructive interest rate, while if you have a lower score you may not be able to acquire credit at all.
As important as credit scores are in our society, very few people understand what determines a credit score. It is more than just paying your bills on time every month.
But payment record is the largest proportion of a credit score at 35%. Paying your bills on time with no late payments is the best way to improve your credit score.
The next factor is the amount you owe compared to the credit you have available. This counts for 30% of the score. You need to not borrow any more than 35% of the whole you have available or it will count against you. The more you use the poorer your score.
Next is the duration of credit history at 15%. The longer your accounts have been open, the better for your score. Use your older credit cards more frequently because the longer the credit history is the superior your credit score.
Next up is new credit. This includes any inquiries. Every time you ask for credit and they run a credit report you get an inquiry on your report that will last for at least 2 years. New credit also includes any new credit that you have acquired.
The last 10% of your score is the category of credit that you have. Installment accounts, which have a definite payment date and ending date are scored higher than revolving accounts which are variable on payments and do not have an finish date. Also department store cards are scored lower than ordinary credit cards.
That is all of the factors of a healthy credit score. As you can see you must pay your bills on time but it is also significant to ration the amount of credit that you use, avoid applying for avoidable credit and create a reliable credit history.
Get your Free Credit Report
February 27, 2009 by admin
Filed under Credit Reports
Its becoming more and more difficult to get approved for a credit card or a loan nowadays. The loan market landscape has changed significantly over the last 18 months, money is not as easy to come by anymore.
When we get turned down for a loan or a credit card it is more than likely down to the lenders criteria and your credit report. A credit report is basically your full credit history from when you took out that first loan or applied for your first credit card.
You may feel that you have been refused unjustly as you have always paid your bills on time. If this is the case then you need to get access to your credit report which you are legally entitled to.
Experian which is one of the main credit companies will give you access to your report for free on a limited basis. Its always good to see what is on your credit report as in some cases it may incorrect and be the very reason you are being refused credit.
With such high levels of fraud going on its important for you to make sure that your details are not being used by someone else.
Simple Credit Rating Repair Guidelines
February 25, 2009 by admin
Filed under Credit Card Videos
If you are refused credit it will more than likely be down to your credit rating. Most people don’t realise that in many cases you can repair your credit rating by undertaking a few steps that will make a huge difference in your credit score or rating. These steps are simple and are explained in more detail below.
Below is a short video that out line how to go about these basic steps:
1. Obtain Your Credit Report
2. Correct your report
3. Justify Bad record
4. Get your affairs in order
5. Stability