Your credit score is a number that is calculated from information on you credit report. It rates the risk of extending credit to you. Some factors your credit score takes into account are your payment history, amounts owed, and the length of your credit history.
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07-21-2008 at 22:40
If your score is already high, you will want to maintain it to ensure you’re getting the best rates around. Make all your payments on time and keep balances low on revolving credit.
07-21-2008 at 22:43
4 major credit bureaus collect information about credit card and give you your score namely: Equifax, Experian, TransUnion and Fair Isaac Corporation (FICO).
07-25-2008 at 00:13
Credit scores are designed to measure the risk of default by taking into account various factors in a person’s financial history. Although the exact formulas for calculating credit scores are closely guarded secrets, the following components and the approximate weighted contribution of each:
* 35% — punctuality of payment in the past (only includes payments later than 30 days past due)
* 30% — the amount of debt, expressed as the ratio of current revolving debt (credit card balances, etc.) to total available revolving credit (credit limits)
* 15% — length of credit history
* 10% — types of credit used (installment, revolving, consumer finance)
* 10% — recent search for credit and/or amount of credit obtained recently