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| Peception Of What Influences Your Credit Score |
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| Written by Lynn Daniels |
| Friday, 18 December 2009 12:49 |
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Your score is very important and is needed for many things, specifically anything that involves a loan. Basically your score is based on your payment history, so how you pay your bills, how much current credit you have and other factors. All of these many factors will be condensed into a three digit number. If you have a good score or one that is high then this equates into being very likely that you will meet all of your payments on time and not have problems paying off your loan. The three major credit bureaus, Equifax, Experian and TransUnion, all use the popular scoring method developed by the Fair Isaac Corporation which is also known as FICO. There are several different sections that make up the credit report and are used to calculate your score. Your score can fall anywhere between 300 and 850. 35 percent of the score is based on your previous payment history, 30 percent is based on the amount of outstanding debt that you have, 15 percent of the score is based on how long you have had credit, 10 percent is based on any new credit you might have and another 10 percent is based on the different types of credit that you have. There are many different things that can affect your score and can lower it or increase it. A low credit score can make it very difficult to get a loan for a car or home. You may be able to get a loan with a low score but it will come with some very high penalties and very high interest rates. However you will not have a problem getting a loan with a high score and the interest rates will be much lower. Your credit score can increase or lower based on many different things and you want to try to keep it as high as possible as it can be very difficult to get a loan with a low credit score. While you still may get a loan with a low score it may be paired with very high interest rates and you may need a much larger down payment. With good credit getting a loan will be a piece of cake and you will have much lower interest rates. You should keep old credit accounts to display how long you have had credit even if you don't use it. You should try to keep your balances below 75% of the balance though 25% is best. It is also important to pay all of your bills on time. About the Author: Learn just how to improve credit score and make your life more simple! Through credit repair you can get a better credit score. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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