Discover The Answers To Questions Like: What Is A Credit Report, What Is A Credit Score, And What Is Credit Repair
Check Your Credit Report
Reduce the Amount of Debt You Owe
This is easier said than done. However, reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. The first thing you need to do is stop using your credit cards. Use your credit report to make a list of all of your accounts.
Then go online or check recent statements to determine how much you owe on each account. Also list the interest rates you are being charged. Come up with a payment plan that puts most of your disposable income for debt payments. Pay the highest interest cards first, while maintaining minimum payments on your other accounts.
Setup a Risk Free Consultation
It measures the amount of risk for a lender to give you a loan.
FICO Scores are computed using the information on your credit report. This information is typically grouped into five categories (see below). Not all categories have the same weight when determining your FICO score.
This example is based on the importance of the 5 categories for the basic population.
For special groups – those who have not been using credit very long – the weight of these categories may be slightly different.
- Account payment history on various types of accounts (retail accounts, credit cards, installment loans, finance company accounts, mortgage, etc.)
- Public records ( judgments, bankruptcy, suits, tax liens), collection items, and/or delinquency (past due items)
Severityof delinquency (how long past due)
Amount past due
- The more recent the
derogatorilyitem the more it the credit score effects
- Number of accounts paid as agreed
- Amount owing on accounts
- Number of accounts with balances
Proportionof credit lines used on your credit cards (to maximize your score use between 1-10% of your credit card limit)
- Proportion of installment loan amounts still owing
Length of Credit History
- Time since accounts opened
- Time since account activity
- Revolving accounts (credit cards)
- Installment loan (fixed payment loans like a car or student loan)
- Mortgage (home loan)
- Number of recently opened accounts, and proportion of accounts that are recently opened, by type of account
- Number of recent credit inquiries
- Time since recent account opening(s), by type of account
- Time since credit inquiry(s)
Re-establishment of positive credit history following past payment
- Inquiries report on your credit for 24 months but only
effectyour score for 12 months
Please note that:
- A FICO score is so complicated to calculate. It is impossible to predict a score or score outcome from a certain event.