isi Halaman

Your Credit Score Could Affect Your Life

There is much information out there concerning your Credit. But what exactly does your Credit mean? In this Article I will discuss three categories. The first is your Credit Score, the second will be your Credit Report, and third will be your entire Credit Report with all 3 Scores.

Your Credit Score is so important these days, that in order to just get job, you a had better of managed your Credit Score properly. Most institutions now look at your score as glimpse into how responsible of a person you might be. Your Credit Score typically ranges from 380 being extremely bad; to 820 being the best. The Bureaus all have a scoring system that dictates your credit worthiness. Whether you have revolving credit, or installment loans, it all determines your creditworthiness with all three bureaus. Your credit score could drop if you charge your credit cards are over 30% of the granted credit line. Your Credit Score will drop if you close out good credit, that has no balance owed. If you are late on a obligation, your Credit Score will suffer usallly a 20 point reduction, which by the way is a extremely big drop. This kind of drop could mean the difference of getting the best rate on a mortgage, or even getting the new job you worked so hard to get. Each of the Bureaus and there are three, Experian, Equifax, and Trans Union, all score your Credit based on your Credit History. Your Credit Score is so important these days that you need to know what it is with all Three Bureaus.

Your Credit Report, is what all institutions look at when it comes to applying for a laon, credit card, mortgage, insurance, or even a job as well. As a consumer you need to know what is on your Credit Report. When accessing your Credeit Report, you need to make sure you access a Tri Merge Report from all three Bureaus, and with all three of your scores. This is what most everyone looks at. If you are going get your credit report this is exactly what you need. You need to know what they are looking at. annualcreditreport.com offers a credit report, but what they fail to mention is you don’t get your scores. Your credit report is useless if you dont get your credit scores from all three bureaus. Your Credit Report will show what all your creditors have to say about you in regards to your history on all your obligations that involve borrowed money. It will give a snap shot for the last 7 years. So make sure you pay everything on time, and don’t allow anything to go to collection.

Your Credit Scores:

The credit scoring software is somewhat similar, but there are different names for each of the agencies.

For example:

Equifax is “Beacon”

Trans Union is FICO Classic

Experian is FICO Risk Model

The general scoring range for these models is as such:

o 780-850 – Low Risk

o 740-780 – Medium -Low Risk

o 690-740- Medium Risk

o 620-690- Medium High Risk

o 620 and Below – High Risk or “Sub-Prime.”

Like any recipe that is top knoch, the precise formula that are used for calculating various kinds of credit scores for credit reports are well guarded trade secrets. Nonetheless, Fair Isaac has released enough information to give very general ideas of how scores are calculated.

Remember the score is calculated by analyzing the entire credit information in the credit report, and the various factors that make up the whole. No singular piece of information or factor by itself determines your credit score.

Factor 1: Payment History (35%)

Factor 2: Amount Owed—– Extent of Indebtedness (30%)

Factor 3: Length of Credit History——- The Longer, the Better (15%)

Factor 4: How Much New Credit? (10%)

Factor 5: Type of Credit (10%)

With all of this being said, go to the top resource in the nation for your Credit Report, http://www.my720fico.com , this resource was created by lenders that understand the need for the correct information out there.

http://www.my720fico.com is your One Stop Resource for Credit Reports and Credit Scores.