Which emerged after the Second World War a number of innovative technologies, the use of credit to become Hong Kong's overall economic situation of the important factors. As a result, your credit rating is to determine your credit card year in April, when you apply for any type of loan: credit cards, 0% APR offer transfer, mortgage loans and car loans the most important factor.
What is a credit score?
Credit report has more than 100 years, as a small retailer to join the creation of new tradeFinancial information of customers. Small organizations, and later merged into a larger organization, these traders associations. By the 20th century, 60 years, consumers have a right to check their credit report, amend inaccurate or misleading credit information is that they detain. In 1971, in the United States Congress, the Fair Credit Reporting Act, consumers have a right to develop and correct the record and the protection of privacy, access to those whoRecords.
A fair credit scoring system is also necessary. In 1989, the fair, Isaac and Company, with the Equifax, credit scoring system combines to create called "FICO" Creating this level of the scoring system, a summary of your credit history. Low-value means that you do a good price is not a credit approval. Some banks may use credit scoring in general the cost of your loan, you set the requirements. Finally, a good credit scoreCan save money.
Factors that affect your credit score
* Your payment history (35%): Your result is negative, if you have paid bills late game, his debt collection company's accounts, or if you file for bankruptcy protection - the more recent problems, a lower score. For example, a 30 - day late credit card payments, you hurt the bankruptcy is more than 5 years ago.
* Your Total (30%): the amount of outstanding debt, if you owe on your credit cardClose to the line of credit in the amount of money, the more likely to have a negative affect your credit score. On the two cards with low balances than only a high credit balance.
* The length of your credit history (15%): The longer your credit accounts have been opened to better your score.
* Latest on your credit record (10%): If you have recently taken a number of new accounts queries, it can affect your score. In addition, youEnter "wait" authorization to obtain a new family, and many loan officer will be recommended to defer purchase of new credit be submitted until the loan approved.
* Use the type of credit cards (10%): receivables from financial leasing companies to lower your credit score. Especially true if you are not a long-term credit history have a foundation in order to determine your credit score.
Number of what it means
Credit score from 300 to 900, andThe national average, about 650 times lower scores under the FICO scoring system in the higher risk of default. They rely on the historical valuation of the industry standard, which indicates that between the low credit rating and credit losses have a direct relationship.
The three credit reporting agencies (of Equifax, Experian and TransUnion) have different evaluation criteria. This is not surprising, you have a different credit score, even in a considerableClosed set. Most lenders mean, come between them, a credit score of a logical number, credit score.
How can you improve your credit score
* Pay bills on time. (If you do not make timely payments, contact your creditors and request a payment plan. Most of the credit card company will give you a choice to pay the balance.)
* Keep your credit card with low balance. (To determine how to use your credit card, whatCredit card type best for you. )
* Close unused credit card accounts just because they are inactive. (As a credit card dormant for some time, you are responsible for consumer credit).
* Finally, to obtain a copy of your credit report every year, it is now available free of charge to all national consumers.
Your credit score is to determine your credit situation of the most important factor. Here is what is reporting and what some of the ideasYou can keep a higher credit score.
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