RSSA short primer on credit reports and credit scores
December 6th, 2006 by Adam | Filed under Credit Score, Credit Score Tips, FICO Score.|
Why Do You Want To Check Your Free Credit Scores? Check the Situation That Best Applies to You And Then Click the Button Below to See Your 3 Credit Scores Absolutely Free I want my 3 free credit scores from Experian, Equifax, Transunion that the government does not provide free I want to apply for a credit card and get a low APR I am preparing for a major purchase (home, auto, boat) and want to make sure I get the best loan rate I qualify for Just curious where my credit stands against the average American credit scores
(Click the button above to see your 3 free credit scores) |
Here’s a real short primer on credit reports and credit scores:
There are three major credit reporting agencies active in the U.S: Equifax, Experian, and TransUnion.
These include your credit history, the amount of credit available to you, how much of that you’re using, your income, and the amount of any new credit, your age, your employment history, and sometimes other data.
There are only five markers that are used in determining the score: your history, length of your credit history, total debt, amount of new credit, and types of credit.
As you would expect, your history and the amount of the debt count for about 60 percent of your score with the other categories splitting the rest equally.
If your score is above 800, you’re in a very elite class with fewer than 15 percent of Americans.
If you hit under 600, your credit will be restricted.
Anything above 600 shows pretty decent use of your credit.
The score to shoot for is 700.
The best way to hike up your score is to pay your bills on time every month.
Following that, paying more than the minimum requirement will give you a boost.
Reducing the number of cards you have will also help.
I see almost no reason to have more than two general credit cards.
Refrain from hurting your score by becoming delinquent (even on a small balance), and that includes parking tickets.
Incidentally, employers and prospective employers will often look at your credit reports and score to see how responsible you are.
Insurance companies are also keeping an eye on your score.
More free tips on how to boost your credit score
Harry Gross | How those credit reports are compiled (Philadelphia Daily News)
Dear Harry: My parents never saw their credit report. They have had credit cards for years; they had a $150,000 mortgage on their home, and they never had a problem. I guess that’s why it never occurred to me to check my own score. They paid for my college education… every dime. My graduate degree is a different ball of wax: It’s on me. I applied for a loan at my bank (also my parents’ bank)
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