Factors Considered While Calculating Your Credit Score
Have you ever thought about the status of your credit score? Or have you ever tried computing it? Calculating your own credit score has its advantages because you’ll be able to find out what went wrong and you’ll be able to anticipate what your actually score is. Here are a few credit score calculation factors that you should think about.
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Factors Considered While Calculating Your Credit Score
Have you ever thought about the status of your credit score? Or have you ever tried computing it? Calculating your own credit score has its advantages because you’ll be able to find out what went wrong (in case there’s something wrong in it) and you’ll be able to anticipate what your actually score is. Here are a few credit score calculation factors that you should think about. 1. You credit score is a three digit number that will determine your credibility when it comes to loans, mortgages and other financial matters. Your credit score will range from 300850 with 850 of course, being the highest. This is made up of your credit report and your credit history. 2. If you are applying for a new line of credit, your creditor will immediately look at your credit score to quickly determine whether you qualify for the credit or not. Creditors also check out your credit report but your credit score will usually be the summary of everything. 3. The way you pay your bills is what usually makes up of your credit report or credit score. Your payments history is actually 35 % of your credit score so it is always best to pay all of your bills on time. Your debts are the next biggest factor for your score because it counts as 30 % of the overall. Credit length history is also important which is why it is not advisable to close old credit accounts to avoid losing history; this is 15 % of your score. 4. There are a few things that most people don’t think that matters in their credit score. Multiple inquiries aren’t a good idea because it can make you lose several points if you do it all the time. Inquiries will count as 10 % of your score and these can actually remain on your credit report for 2 years. 5. Different kinds of credit will also affect your credit score and again, it counts as 10 % of the total. Having different is actually a good thing because it will seem to your creditor that you have experience in managing multiple credits, more points if you are handling all of them really well. But take note that it isn’t wise to open up new lines of credit just to make it look like you have a lot. Open new accounts when you are sure that you can handle all of them because even if you don’t use them, there still might be a few hidden fees that you have to deal with. 6. Avoid missing out on your payments because delinquencies on your credit may stay up to 7 years on your credit report and it can totally bring down your credit score. These are just the few things that you should consider. Always make it a point that you do a credit check regularly to be updated all the time. Joy is an active blogger who shares extremely interesting finance management tips over the web that encourages people to manage their personal finance, check credit score regularly and improve credit scores.
Have you ever thought about the status of your credit score? Or have you ever tried computing it? Calculating your own credit score has its advantages because you’ll be able to find out what went wrong (in case there’s something wrong in it) and you’ll be able to anticipate what your actually score is. Here are a few credit score calculation factors that you should think about. 1. You credit score is a three digit number that will determine your credibility when it comes to loans, mortgages and other financial matters. Your credit score will range from 300850 with 850 of course, being the highest. This is made up of your credit report and your credit history. 2. If you are applying for a new line of credit, your creditor will immediately look at your credit score to quickly determine whether you qualify for the credit or not. Creditors also check out your credit report but your credit score will usually be the summary of everything. 3. The way you pay your bills is what usually makes up of your credit report or credit score. Your payments history is actually 35 % of your credit score so it is always best to pay all of your bills on time. Your debts are the next biggest factor for your score because it counts as 30 % of the overall. Credit length history is also important which is why it is not advisable to close old credit accounts to avoid losing history; this is 15 % of your score. 4. There are a few things that most people don’t think that matters in their credit score. Multiple inquiries aren’t a good idea because it can make you lose several points if you do it all the time. Inquiries will count as 10 % of your score and these can actually remain on your credit report for 2 years. 5. Different kinds of credit will also affect your credit score and again, it counts as 10 % of the total. Having different is actually a good thing because it will seem to your creditor that you have experience in managing multiple credits, more points if you are handling all of them really well. But take note that it isn’t wise to open up new lines of credit just to make it look like you have a lot. Open new accounts when you are sure that you can handle all of them because even if you don’t use them, there still might be a few hidden fees that you have to deal with. 6. Avoid missing out on your payments because delinquencies on your credit may stay up to 7 years on your credit report and it can totally bring down your credit score. These are just the few things that you should consider. Always make it a point that you do a credit check regularly to be updated all the time. Joy is an active blogger who shares extremely interesting finance management tips over the web that encourages people to manage their personal finance, check credit score regularly and improve credit scores.
