Understanding The Makeup Of Your Credit Score
Keywords: credit report, credit score, credit article, article search, find article, finance, submit article
Your credit score affects nearly every part of your life: your home, your home, your purchasing power. Learning what your credit score is, how it is made up, and how it is used is the first step into make the most of your credit abilities.
Credit scores are typically between 300 and 850, with the higher the number, the higher your credit score. The higher your credit score, the higher the likelihood that you will pay your bills. This is important for obvious reasons to lenders, which use your credit score to determine what you can borrow and what the interest rate will be.
Knowing what things are put together to determine your score is the best way to figure out how to improve it.
Fair Isaac Corporation (FICO score) has disclosed what items and their weight are used to determine their credit scores:
35% is the punctuality of past payments. Pay on time, and this is an easy one. One thing to note is that only payments more than 30 days past their due date.
30% is the total amount of debt you have. It is the ratio of how much debt you have, to how much debt you could have.
15% is the length of your credit history. This is talking about the length of each loan, and how long it’s been around.
10% is the type of credit used (such as mortages, cars loans, or revolving lines of credit).
10% is the recent search for credit and amount of credit recently received.
Somethings like bankruptcies and foreclosures do not fit directly into the breakdown, though they are weighted obviously, so the percentage breakdown is only a rough guide.
Another note is that although your income and employment history do not affect your FICO score, they are obviously looked at when applying for a loan or a mortgage.
Having too many credit cards, a court judgement for payment, or a tax lien can also affect your FICO score as well.
Now, you may be wondering how to even know what you credit score is, to know if you need to do anything to effect it. According to the FACT Act, each legal U.S. resident is entitled to one free copy of their credit report from each of the 3 reporting agencies - Equifax, Experian, and TransUnion - once every 12 months. You do not have to request it from all 3 at the same time, however, so you can offset the request to receive a new report every few months.
So, you may wonder, why would you want to receive your credit report every so often. Afterall, things can’t change that fast … or can they?
There are a number of things you need to check for on a regular basis
- Identify Theft. This is a very easy way for your own credit score to get mangled.
- Errors. Finance companies have humans working at them, and humans can make mistakes. With a credit report, you can pick up mistakes and have them corrected by the institutions that made the mistake.
So now you are informed on what credit scores are, what they effect, and why are they important. Having a good handle on keeping a good credit score can literally save you money for years upon years on mortgages and loans.
Tony Kristovich is the owner of www.eArticlesOnline.com, an article directory where you can submit articles for massive exposure, and pick up great new content like this credit article for free.
Previous Articles Highlighter:
Computers Vs Books In Home Schooling (1)
Being an effective tool for homeschooling, the students can choose from a wide range of learning resources according to their requirements. For example, in network learning, text based documents and reports, plus speech and audio-material, and video clips can be viewed on the computer.
Article Directories - Making Money With Articles (2)
It will eventually help to bring more traffic and customers to your website, which will lead to new orders and more profit. This will also increase traffic to your website and hopefully increase your backlinks as the more articles you submit to article directories the more chances you have of being accepted and therefore having a backlink to your site.
Understand Paintball Fields And Get The Winning Edge (3)
Check to see if there are any around you and give the game a try! www.paintballexcursion.com brings you the latest on paintball. Paintball is gaining in popularity, and we want to bring you the most up to date information online!
Banner Advertisements - Making Money With Articles (4)
Some sites like to gather a lot of banners so that they can be a directory or portal site and not have to have any real content. These "banner farms" or "link farms" will do nothing positive for your site and, in the meantime, you will be bringing them potential traffic.
"Pay-Per Click" Monitor Your Ad Campaigns (5)
That means that your ad did get a response, in that someone clicked and went to the destination url you set up. It does not necessarily mean response in terms of a sale made.
Camping: An Enjoyable And Fulfilling Outdoor Activity For Both Young And Old (6)
Family members, though staying together, may not have time to remain connected. Communication is sometimes limited due to busy work schedules. Hence, a well-planned camping trip during the weekend can certainly help to bring the whole family together.
Guide To Army Distance Learning Center (7)
We all know that army is all about physical practice so how do you get in shape online? Well, you will be given assignments that you need to practice and perform on your own.
Guide To Accredited Distance Learning Program (8)
Education helps in every field whether it will get you a promotion or just get you equipped to help your children better with their homework, it is a step forward and you should not hesitate to take it.
Your Quick Guide To Acne Facts, Tips And Treatments (9)
Essential fatty acids are particularly important to people with inflammatory conditions such as eczema and acne. And fatty acids are particularly important to people with dry skin. Good skin is often a reflection of a good digestive system.
Your Dry Skin Needs A Break Today (10)
The dermis is the layer of skin beneath the epidermis that consists of connective tissue and cushions the body from stress and strain. Epidermis is the outermost layer of the skin.
Newer Articles Highlighter:
Traditional Console Cabinets Give Way To Contemporary Styles (1)
Contemporary console cabinets Eventually traditional console cabinets gave way for the contemporary styles and designs of cabinets to suit the contemporary functions. Console cabinets available today are attractive and mainly used for media storage like VCDs and DVDs as they have roll out trays.
Desert Landscaping: No Longer Barren Land (2)
Search For A Landscaper Near You To find landscapers that specialize in desert landscaping, check the local yellow pages or do an internet search. Not many people have actually heard of desert landscaping so, chances are, if you know what it is and what it looks like, you probably know who to ask about it.
How To Avoid Mindless Unit Studies In Homeschooling (3)
Rather than wasting time on unrelated activities, units should be constructed in such a way that they advocate and reinforce the theme covered in the unit. While some units are based on scientific topics, others cover topics related to literature or music.
Loft Conversion Options And Advantages (4)
Doing it yourself can save you money rather than spending it on a loft conversion specialist, but that part is completely up to you. www.econoloft.co.uk is the leading UK loft conversion specialist.
The Basic Principles Of Integration Marketing (5)
As far as the payment process I would mention the following companies/services: - Paypal (it is free to join for buyers and you can transfer money with a simple click if you have the email address of the person that must have a paypal account in 55 countries, it is secure and accepts credit cards.
Free Weight Training Routine To Get A Sculpted Body (6)
To push your body to the next level, you have to change your weight training program and avoid getting stuck in the rut. Many people actually are in a plateau phase which they did not know of and in the end of the day, they would not get the sculpted body that they wanted because their muscles are just not responding to their weight training plan anymore.
Turn The Internet Into A Profit-Making MACHINE With A Newsletter (7)
Starting an Online Business for Dummies, 2nd Edition. IDG Worldwide Books, Inc. Foster City, CA: 2000. p.231-34. To find the best home based business ideas and opportunities so you can work at home visit: www.Traffic24Hours.com
Turn The Internet Into A Profit-Making MACHINE With Search Engines (8)
From here, there are full directions on how to list your domain name or URL so that it will be included in searches that Google does. It may take a few days to go into effect.
Diversify Your Portfolio With Florida Coastal Land (9)
Buzz Scott has over 14 Years of Real Estate Investing Experience. He has been showing others how to make big profits when buying investment property at the right price.
Saltwater And Freshwater Aquariums - What You Need To Know (10)
You can also include plastic or real plants, castle or miniatures ship and other fancy decorations in the aquarium, but just be very careful that it won't clutter inside. Light is also essential in saltwater aquarium for the enhancement of the color of the aquarium and especially the fishes survival.