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5 Factors in Getting a High Credit Score

By Andy Snyder
Published: Thursday, November 26th, 2009

Loans here, credits there, debts everywhere- these are the common problems facing people today. And the solution to these problems is getting a credit report advice, which will help you organize your bills and will help you estimate how much you need to pay per debt or credit each month. This will help you not to lose your money all at once.

In a credit report advice, you will get 2 parts, a credit report and a credit score. The most often asked question is this: How will I get a credit score, and what is its basis? Well the most common answer to that is your credit score will be based entirely on what is in your credit report. Well, that is true, but here are the specific bases for getting high or low credit scores coming from your credit report advice:

  1. Your debt
    Your credit report will always depend on how much you owe different creditors. This is usually 30% of your credit report. Of course if your debts are too much to handle, then it will be hard for you to apply for another loan, because credit scores will sometimes be the only thing a company will look at. If your score is low, then of course it will be hard for you to get a loan.
  2. How long you have had debts
    It is easy to see that if you have had a debt for a long time, it only means that you are not paying at the right time, and that gives you negative points. Having longer debts will not help you at all when applying for new loans. But of course getting a credit report advice will guide you through payments as to how much you should pay and when you should pay. This factor is about 15% of your total credit score. This will not only look at your current account, but will look back at your old accounts so it is always best to have clean records.
  3. Your history of payments
    As it was said from the 2nd factor, your accounts will be looked up, including the oldest of oldest account. Of course factors such as your payments whether on time or not will be a very big factor because it will help determine whether or not you will be a reliable loaner. The frequency of payments is a very big factor including your early and late payments. As you can see, this is a very big factor as it is 35% percent of your credit score.
  4. Number of applied credits
    This factor is not so big but is as important as the rest. If your creditors see that you have a lot of credits then of course, you will have a hard time in applying for a new one, especially if most of them have not been paid yet. This will amount to 10% of your score.
  5. Types of credit used
    In getting a credit report advice, you will be guided on which credits are to apply for, as the FICO wants you to have balanced credits of different kinds.

These are basic factors that need to be kept in mind when applying for credit.

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