The Real Story Behind Every Credit Score
Did you ever receive a letter from your credit agency showing your credit score and the question running through your mind is how this happened? Well, that is the typical scenario a credit holder experiences when they see how low their scores got. Don’t you just hate that to happen to you all the time? After reading this article, you will never have to suffer from that again.
First thing to know is that your present credit score is based on your past payments which comprise 35% of your overall credit score. If you have been paying religiously, then there is no room for asking questions. But if you missed a couple or more due dates, then this could mean bad news for you. Although creditors have different standards on when they will account a late payment, it is still advisable to pay on time. Second, the 10% of your score comes from your variety of credit. This means having different categories such as car loan, house rents or simple credit cards show your capability to handle an array of credit options as long as you remember when to pay all of them of course. Third, 15 % of your credit score is based on how long you have a history of credits. The better you have handled them over the years would determine good score. Fourth, 30% comes from the total amount you owe. It is weighed parallel to your income. So make sure to make your debt lower than your income so as to keep you scores floating. And last but not the least, 10% of the credit score you owe from inquiries regarding your credit. This could mean an overdue or a forgotten due date which is totally not for the best.
The root of this mysterious credit score is the credit holder’s lost of control and lack of knowledge. As much as you want to put all the blame to the credit agency not informing you ahead, you have to accept the fact that you are responsible for the kind of position you are currently on. You can now do the calculating all by yourself. With all these explained in simple terms, ignorance of the policies is no longer an excuse.
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Categories: Credit Score Articles Tags: agency, based, Credit Score, credit score factors, different, mean
What Makes For A Credit Score
Have you ever tried getting a letter coming from your credit agency that displays your credit score and the question running through your mind is how did it come about? That’s the usual case a credit holder is experiencing when he or she sees how low their standing is.
First off, you must realize that your current credit score will rely upon your past payments. This makes up for 35% of your overall credit score. If you have been religious with your payments, then no further questions will be asked. Bad news if you have missed a couple of due dates. Different creditors have different standards when it comes to when they will be accounting a late payment. That said, it’s still best to do timely payments.
Second, the 10% of your score will be coming from your variety of credit. This would only mean having different categories like car loan, house rents or simple credit cards display your capability to handle a myriad of credit options, given you keep in mind to pay all of them.
Third thing to know is that 15 % of your credit score will be taken from how long you have a history of credits. The better you have handled them in the past years, the better your score would turn out.
Fourth, 30% comes from the overall amount of the balance you owe. It will be weighed parallel to your income. So, see to it that you make your debt lower than your income to keep your score afloat.
And of course, 10% of the credit score makes up for what you owe from inquiries with regard to your credit. This could mean an overdue or a forgotten due date.
You can trace back this mysteriously low credit score to the credit holder’s lost of control and lack of knowledge. It’s tempting to blame the credit agency for not informing you ahead, but you have to accept the fact that you’re responsible for the kind of position you are presently on.
Categories: Credit Score Articles Tags: agency, better, Credit Score, credit score criteria, different, payments
Credit Union getting different credit score?
Question by LCJC: Credit Union getting different credit score?
I am looking to get a car loan from my credit union. The strange thing was that the credit union got higher scores than when I pulled my own credit report from both Equifax and Experian. I pulled my report the day after the credit union did. Was wondering if the credit union uses a different type of “score” when pulling for a car loan.
Thanks in advance.
LC
Best answer:
Answer by Kristi S
What was the difference in the credit score? When any business runs a credit check on a person, the credit score of that person is docked by a couple of points. The only exception to this, is when the person is looking for a mortgage, where several mortgage companies are looking at you credit. The credit companies know that you are only going to finance one house, and only doc the credit score as one business was checking.
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