Figure Your Credit Scor
long and each of the three major companies in the United States will
participate in reporting credit scores and histories with a different
method. This is why your credit score is going to be a little bit
different from one to the next. There are some factors that you can take
into consideration if you want to estimate your credit score on your own.
The first thing is if you have not ever owned a credit card or had any type
of bill in your name or if you have borrowed money of any kind, your credit
score is going to be zero. Even though this is not considered to be bad
credit, it is hard to even get a loan with no credit as it is with bad
credit. There are some companies that may be willing to take a chance on
someone with no credit but it is much better to build up your credit little
by little as you go by having cards in your name and living a comfortable
and stable life within your means of income.
Your credit history is going to make up about 35% of your total credit
score and it is very important. The bills that are not paid or if you have
debts that have defaulted you will hurt your credit score for 7 to 10 years
before they are all erased. You need to think about this and all of the bad
choices that you make today can hurt your credit in the future. If you are
repaying these debts now, chances are they will still show up on your
credit report now as bills that were paid late. There is 15% that is going
to be the length of your credit history. It is a good idea to start
building credit as soon as you can. Your score is will improve as time goes
on as long as you are maintaining a bank account. The information like
length of employment or residence so that it can be classified in this
section so if you have a regular and stable life, you will have a better
score than someone else that moves around all the time.
Then 30% of your score will depend on what you are currently owing to
creditors. Even if you are not late on paying your bills, if you have many
loans out at one time, it may be possible that you are denied to have
another. Therefore it is important to only take out the loans you really
need and to repay them on time or early if you can. If you pay off your
loans early, you will not only see your credit score rise, you will also
save money on paying interest. This will show up on your credit history.
You will also want to try and keep your money in one place if possible.
10% of your credit score is going to be based on new accounts. They will
look at how many different types of loans you have applied for and how many
you have open now. When you are opening and closing accounts too fast is
not a recommendation.
You need to use your common sense. Know your credit score and how it is
calculated is going to help you find mistakes on it. This may help you and
your credit score in the future. You are able to see a free copy of your
credit report annually for free so you should review this as well as get
your credit score to be sure that you are being treated fairly.
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Tags: 10 Years, Bad Credit, Build Credit, Cards, Choices, Credit Card, Credit History, Credit Report, Credit Scor, Credit Score, Credit Scores, Creditors, Debts, Histories, Little Bit, Money, Reporting Credit, Scor, Stable Life, United States