What makes a great Credit Score?

Understanding how credit scores are calculated can impact the financial decisions of yours. Under the FICO scoring system, a credit score ranges from a low of 350 to a high of 850. These numbers are widely used to signify a person’s credit history or maybe “credit worthiness”. In this post, let’s discuss the fundamental points that you need to know about your credit score.

Elements that affect Your Credit Analysis
Your total credit score is based on five primary factors that are included in the credit report of yours. These are the following:

o timeliness of the payments of yours
o the amount of types and debt of your credit
o your credit limit usage
o length of your credit history
o public records
Under the public records category of the report of yours is just where court judgments (bankruptcy, tax liens, foreclosures) as well as other bad remarks (if any) regarding your credit are written. Naturally, any of these negative remarks, particularly a record of bankruptcy can dramatically pull down your credit score.
Timeliness of payment comprises aproximatelly 35 % of the final score of yours. That’s in fact the largest percentage among all the key elements given. Next, is the quantity of your debts and also the types of credit you have making up 30 % of your score. Having several different types of credit or maybe account under the name of yours does not guarantee that you will get a top rating. It would still rely on the current financial status of yours, your debt-to-income ratio, and how well you keep up with your payments. Thus, it’s clear to see just how even occasional late payments may badly hurt the credit of yours.

How Lenders View Credit Scores
Various companies & lenders have different standards of what a good credit repair service credit rating is. Right now there could be a difference of 5 to ten points per lending company’s standard of poor, fair, excellent and good credit. Thus, keep in mind that a single late transaction may in addition make a positive change in the score you’re aiming. To be sure that you will be in great standing, it’s best to attain a score that’s higher compared to the boundary or limit.