The very basis of credit scores is for lenders to determine how likely it is that you will repay any money that they lend to you. A ‘lender’ can include anyone from a credit card company, to a mortgage broker, and credit union to a student loan office. All of these people look at your credit score to determine how risky it is to loan money to you.
Therefore, it makes sense that a significant portion of your credit Continue Reading
Category : Credit
What is your credit score?
A credit score or number indicates to lenders how likey you are to repay or default on a loan.
The program used to generate this number is very complex. The bureaus use secret calculating techniques to reach these numbers. There are various formulas used. Basically put, your information is entered into a computer. The program calculates the data informat Continue Reading
It can be very confusing to answer the question of whether or not to close older credit card accounts, especially to someone who is just learning about how to repair their credit. On the one hand, these are probably cards that you rarely, if ever, use. On the other hand, they represent a major portion of your credit history. Let’s look at both sides of this double-edged sword and determine the best course of action.
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This time of the year, everybody is thinking about their finances. Money is on our minds. So while you’re rummaging through your receipts and reviewing those W2 forms, add a credit report to your list.
Why get your credit report right now? Making sure your credit report is accurate can get you lower interest rates, save you money and help protect you from identity theft.
Wow! A credit report ca Continue Reading
The factors on your credit report that are used to determine your credit score are broken down into 5 categories, each with it’s own weight on the equation.
1. payment history (35%)
2. amounts owed (30%)
3. length of credit history (15%)
4. new credit (10%)
5. types of credit used (10%)
Payment History
One of the primary reasons that the credit scoring system was de Continue Reading
