Kelly has a blue-collar middle class in California who has a conscious effort to keep up with all his creditors, a positive credit rating, his mortgage, credit cards company.He him, made him feel proud of the timely payment of all creditors, should not be occurred in the payment of his whole life. However, to his shock, he refused to Sears customer limit of 300 U.S. dollars, because only a 589 FICO score.
Credit ratings are alsoKnown as the FICO score 300.8507 million multi-valued, will serve as the score respectable score below 660, it is difficult to small cards, similar to Kelly even tried to be approved. Please note that 58% of Americans own more than 700 Fico, 27% of the 600-700, the remaining 15% of the money is less than 600 minutes *.
So, what caused Kerry a mediocre credit score, even thoughFinancially sound? To answer this question, we seek FICO score is calculated as. Here are five of your FICO score is to use factors:
Payment History - 35%, credit card capacity (the amount you owe compared to your credit limit) - 30% of the length of credit history - 15% of the credit type - 10% of new loans - 10%
Since 30% of the credit score is determined by the ratio of available credit will be used included in the calculation, it isMay have a bad credit rating, in spite of what your credit the incident took place near the ceiling of the credit card balance of payments recorded a good Kelly.
Let us now deal with the five categories of strict, and find out you need to do to improve your credit score.
Payment history, 35%
This is not self-evident that the classification is only to pay bills on time, not exceeding 30 days, starting too late as a creditor of every bill,Report late payment on your credit card at this time.
When you foresee himself and the bill late, you'd better notice of the creditors, because there may be a special installment loans 30 days no adverse effects, protection from your credit card.
Recent late payments credited to the credit of a sudden increase than the earlier, then you is not more than 60 points, fell to a new one created when there are perfect credit, look at nightHistory.
Credit capacity by 30%
This is not how much money you owe, but how much credit you have available. They are your guests will be charged more if your credit card limit the overall impact of 500 yuan, you must be 400 U.S. dollars, compared 50000-100000 yuan, using the available credit limit.
Therefore, you should not exceed the credit card couple more credit, and is best to keep the utilization rate of 10% depositLine of credit in these accounts. Doing so may lead to more than 60 percentage points.
Length of credit history, 15%
The older generation of your credit history the higher the credit, driven by this factor. The 20-year-old can expect credit conditions to a higher FICO score as a human being, who also compared the 10-year credit, taking into account all other factors being equal consideration.
Types of credit --10%
This factor is found in your credit status of credit accounts range. In order to meet this category, is expected to open and active for at least one credit for each different account: 1) the mortgage account, 2) tuition fees account for 3) of one cycle of credit card.
Three different types of accounts, instead of an open credit card, your credit card the most affected. Therefore, for those who open a credit cardJust buy a Fico score will increase by up to 30 minutes results.
New credit - 10%
Your results confirm the account is open and the average length of time to be included in the cost of your credit report. Open a new account on the negative impact of this factor, nor is it best to close the old account, because it will reduce the average level. Therefore, you will find more experienced account how your credit score isElectricity, unless there are new accounts were opened.
In addition, this category can be from potential lenders your credit report to a recent request, and new accounts, you are done. It is useful to keep to a minimum.
Well, since you can better understand your credit score calculation, let us do what steps you can take to ensure the best results Fico review.
To ensure that the correct credit bureau dataAnd resolution of legal errors.
Payment of credit card, for the first time reached the limit (assuming interest rates close to the same).
Balance of the total paid circulation, but close to these accounts. (Ie, balance of low and high limit).
Mobile recycling debt balance interest rates, but again, do not close the revolving accounts.
Minimize new accounts, do not open credit accounts, if necessary, or if you diversified portfolio of credit accounts.
If youObligation to transfer is one from a new credit card company, credit card and better than the new policy, your current credit card loans, whether they can make available the provision, rather than open a new credit card.
If you turn off the cycle accounts recently, a better strategy would be to open What are the requirements the lender if he or she closed the account and see if they can re-open the same account, and can keep the original packaging to open a new account日期.
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