Credit Score-Free Credit Score

Credit score information is what your lender will use to judge your application, they use it to evaluate the risk of giving you credit. As you must already know, credit institutions are a business and are only interest in making a profit in lending there money. They look to only lend money to responsible people with a good track record of repayments.

Lenders assess each application by checking applicant’s credit score. By doing this they are able to determine if your application is worth the risk. Your credit score is made from your past credit activities as well as other information in your credit file.

There are many different factors that come into play when a credit score is calculated, a predetermined formula is used by credit reporting agencies to come up with your credit score. This formula will take in to account all the information that is available to them in a credit report, then is used by credit reporting agencies to come up with your credit score

You must at least have one account for at least six months, that has been regularly use and updated, in order for this score to be calculated. This will ensure that you will have enough recent information in the credit report, from which they will base their calculations.

Any previous payment history will account for 35 percent your credit score. This will also include any one time payments you have made. Any records in your credit score of late payments, bankruptcies, lawsuits, etc, will have a detrimental effect on your credit score.

The amount of credit that you have applied for in other past, will account for about 30 percent of your credit score. Not only will the total amount you have borrowed be calculated, also the amount you have borrowed from different accounts will be as well. For example if you maintain a small balance in your accounts, then this will have a positive effect on the credit report.

The length of any credit history you have accounts for 15 percent of your credit score. The oldest account and the average age of your other accounts, will be considered as well. Another thing that will be considered, is the length of time that has passed since you have used certain accounts.

The number of deposits you have made will have made account for about 10 percent of your credit score. Any previous loan or credit applications will also be taken into account.

Credit card debts as well as installment credit as in, personal loans and mortgages are taken into account when calculating for your credit score.

The formulas used by the different credit reporting agencies vary, when calculating for your credit score. But more or less, this is how the above information is used all the credit reporting agencies, to come up with a viable credit score to assess your credit risk.



By: Graham williams

About the Author:

Rashad Mcgillivray

datrik asked:


I’m trying to improve my credit score(530) and am going to get a Bank of America secured credit card. It has a $29 annual fee and a 20% APR. Is there another proactive way to dramatically improve my score without having to face such high interest rates?

btw, I havw already dealt with my bad credit past. I’m looking for things to build my credit, not fix it.
thanks!

Reed Arrendondo

gnormb asked:

A blues about credit scores for everyone who’s ever had less than perfect credit…

Tommy Meyer

Emily A asked:


What if you have three different credit scores from experian, transunion and the other one. Which score will finance companies look at for car loans?

Season Defrance

55ella2007k asked:

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Abraham Ennis

danac210 asked:


I have a low credit score. I have finally paid off all my credit cards, but the score is still low. I wondered if I should get a credit card woth a low available balance, like a store (i.e Gap, Macy’s, etc. ) credit card. Would it be benificial to buy a few things a month with the card and pay off the entire balance each month? I was hoping to do this as a quick way to rebuild my credit, will it work?

Dixie Peon

d0nkeypunch4u asked:


Just curious to know what type of credit score/history lenders look for when approving people for a mortgage.

Len Yetter

seaned1916 asked:

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SGMD84 asked:


I have already used my free trials at the big three credit bureaus, and don’t want to have to pay too much to see my credit score. I’ve found ways to see my credit score for $15 but I’d rather spend less than that. Any suggestions?

Telma Degrazio