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Basic Factors to Keep in Mind to Get a High Credit Score

By Andy Snyder
Published: Monday, November 30th, 2009

Financial difficulties are just around the corner for everyone. Professionals, Fathers, Mothers, even students have loans. But if you are in way too deep in your debts, then the best solution is to get a credit report advice, because this will help you have an overview of your accounts through organizing your bills and helping you estimate how much you need to pay to each credit at a certain time table. This will of course help you save money by not losing it all at once.

A credit report advice consists of 2 parts: the credit report and the credit score. The most frequently asked question is “How will I get a credit score, and what is its basis?” The answer to that question is you will get a credit score form your credit report after getting a credit report advice. The better your score, the better your chances of getting a new account. But the question is, how do you get a good score anyway? There are 5 basic things to consider.

The first factor is your debt. Your credit report will mainly depend on how much you owe different creditors. This factor will usually add up to 30% of your credit report. Of course if your current accounts are too much to handle, then you will have a hard time applying for another loan, because credit scores will sometimes be the only thing a company will look at. If your score is low, then it follows that your chances of getting a loan will be lower.

The second factor will depend on how long you have had your debts. If you have had a debt for a long time, it will only mean that you are not paying on time which will give you negative points. Having longer debts will not help you very much when you want to apply for new loans. But of course when you get a credit report advice, you will be guided through payments, as to how much you should pay and when you should pay. This factor will cover about 15% of your total credit score.

A third thing to keep in mind of is the importance of your payment history. As said from the 2nd factor, every detail of your accounts will be looked up, even the most ancient ones. A very big factor will be whether your payments have been made on time or not. This is a factor because this will show whether you are a reliable account holder or not. It is very obvious that this is a very big factor as it is 35% percent of your credit score.

The 4th factor is the number of your applied credits because this will determine whether you will be able to pay for your credit, especially when you have plenty of credits that are still unpaid. This amounts up to 10% of your score.

The last factor is the types of credit you are using. In getting a credit report advice, you will get advice on which credits are to apply for, as the FICO suggests you to have balanced credits of different kinds.

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