The rating methodology - it is how it works

This is 90% for loans from the rating method, Fair Isaac company, method, commonly referred to as FICO method. Credit Scoring Report this method range from 300 to 850 to better results than a higher value. FICO credit score is the United States, the median 723

FICO score is based on five categories included in your credit report information.

Your payment history - 35%

TheIn the evaluation method is an important factor is the record of payment. Complete 35% of the credit score based on how how to make timely payments. Included in this category late pays, collections, is responsible for write-off and bankruptcy. In more current, in your documents, derogatory credit even more serious. Even the most terrible things will affect your credit better with age.

Outstanding debt - 30%

The next key factor, the creditMethod is how much debt you have with him. Credit card debt, especially the use of a magnifying glass, because the easiest way to obtain the cards anger. If you are one or two of color "to", your credit score may be much lower cards. A better balance than the previous maximum value of the spread of a few cards from them. If possible, continue to the ceiling of 30% or less of all card balances.

Length of credit history - 15%

Found that the longer your loan, moreThey are regarded as loans to people talk about it. A long-term credit history a lender provides detailed information, you estimate your future actions.

Advisory Service - 10%

Search accounts for 10% of the credit rating approach may be hard to understand. Every time you apply for credit, insurance, leasing or employment, there is a good opportunity to get a credit report. This is the so-called hard investigation and will be recorded in your credit report. Lenders look at these requirements, especially if theThey occurred in the past 6 months.

Lenders are not particularly concerned about more than 10 it is difficult if you do not have their own credit report, the spread in the past few months. However, if you suddenly have 8 to 10 investigations in the short term, they tend to be nervous. The only exception is when there is a few questions indicate that you are looking for a specific type of loans such as auto loans or mortgages. It should be clear, you can only search for such loans.Queries can stay in 2 to 3 years of your credit report.

Lenders often prefer to promote a small version of your credit report. This was considered to be a soft, to investigate and did not report. Similarly, if you have your own credit reporting requirements, even as a survey, but your credit report does not show any copies.

Different types of credit you - 10%

Of a mortgage, car loan, bank loans, credit files, two or three credit cardsThe lender that you have the ability to manage multiple types of debt. The diversity of this debt. In your credit score, if your credit history shows that only a few credit cards, even if your payment history, it is perfect, your results will be reduced.

Learn how to assess the methods of work, you should better manage your credit score. Through appropriate management, you can easily embark on a 723 or higher credit score in the median.