Credit Report – How Your Credit Score is DeterminedWritten by Charles Essmeier
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or her loans on time will obtain highest scores.
Another third of score is determined by current debts, and ratio of debt to amount of available credit. Keeping all of your credit cards at or near their limits will hurt this portion of score. This seems obvious; those who are already near their credit limits may have trouble paying back any future loans.
The remaining third of credit score is determined by three factors – length of credit history, recent credit applications, and types of overall credit in individual’s credit history. The length of credit history is most significant item, as lenders are more suspicious of borrowers who have not established a pattern of borrowing and repaying loans. A history of repaid loans goes a long way towards fortifying this portion of score. Recent credit applications, particularly a lot of them, may suggest that individual is desperate to borrow more money and may have a financial problem. Similarly, types of credit demonstrate spending patterns and reliability. A credit report containing all credit cards may be seen as more risky than one with a few credit cards, a repaid auto loan and an ongoing mortgage.
By seeing how a credit score is compiled, consumers can take action to keep their scores healthy. A good score helps borrower obtain loans at better interest rates, and that is something that everyone can appreciate.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding mortgages and home equity lending .
| | Home Loans – Repair Your Credit Before You BuyWritten by Charles Essmeier
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just takes time.
The way to repair your credit record is to start paying your bills on time and paying off your debt. More than one third of your credit score is determined by your past ability to pay bills and to pay them on time. Start doing so now. It may take a year or two, but steadily paying your bills without making any late payments goes a long way towards repairing a credit score. Another third of your score is determined by your ratio of debt to available credit. If your credit cards are maxed out, you need to pay off or pay down your balances. It’s tough to obtain a loan when you are already in debt to gills.
Stop using your credit cards, if possible. Don’t cancel them; just stop using them, particularly if you have a balance to pay off. You want to reduce your debt. Pay cash when you can. And check your credit report for problems. You can obtain a copy for free from free credit report Website.
Repairing your credit record takes time and discipline. There is no quick solution other than paying your bills, paying them on time, and waiting for damage to heal. After that, you should be in good shape to obtain your home or car of your dreams.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation and credit counseling information and HomeEquityHelp.net, a site devoted to information on mortgages and home equity loans.
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