Sometimes We All Need A Little Insight...
7/01/2010 Golf Savings Bank - Printable Article Available HereYour credit score is calculated based on the following:
35% for your payment history
30% on revolving balances
15% for credit history (number of new and old accounts)
10% is on type of credit
10% Inquiries
*The average credit score is 678 with 50% of the population above 720 and 50% below 720. FICO scores are between 300 and 850.There are 3 bureaus, Experian, Equifax and Trans Union, and they've 40 different factor codes to determine your scoreSecrets to a better score:
- Have between 3 to 5 accounts
- Installment debt doesn't affect the score as much as revolving
- Keep old accounts open.
- Only apply for new credit if you need to.
- Finance company loans are bad for your score. They consider these as impulse buys.
- Closing existing credit doesn't necessarily help your score unless you get a comment on your credit about too many open accounts.
- Pay down existing revolving below 50% to bring your score up.
- The amount of points they deduct for each person is based on their credit profile. If they're a young credit user and they've several new accounts, they're hit harder than someone with long term established credit.
- Inquiries are looked at over the last 12 months in the FICO score. They will deduct between 5 to 15 points for each and sometimes up to 30 if young credit or recent bankruptcy.
- If there is a recent bankruptcy, the credit history starts from that day forward. The score is based on how many accounts are included in the BK.
- If a collection is very recent and you pay it off, it may keep the score the same or even raise it, but old collections that are paid will bring it to a recent date and drop the FICO.
