| What makes up a credit score? |
|
|
|
|
|
dreamer100
Full Member
Cash: $ 12.60
Posts: 52
Joined: 20 Jun 2007
|
| What makes up a credit score? |
 |
|
I was told I have a credit score of 835 on a scale of 501-990 which is a B rating. That is good but I have never found anything negative on my credit report and have paid off car loans, a student loan, always pay credit cards on time, and paid off a mortgage.
This rating is good but what would it take to make it higher?
Thanks.
|
Wed Jun 20, 2007 3:31 am |
|
|
coaster
Senior Advisor
Cash: $ 1358.20
Posts: 6687
Joined: 11 Oct 2005
Location: Wisconsin
|
The score you haven't isn't a FICO score, which is the scoring model lenders use, and only goes to 850. It's still pretty good, though. If you want your true FICO score, you can only buy it from Fair Isaac or from Equifax. Experian and TransUnion keep a FICO score for reporting purposes, but for marketing purposes they sell their own proprietary scores, which likely is what you have there. Here's a good article that answers your question:
url=http://en.wikipedia.org/wiki/Credit_score_(United_States)
~Tim~
Eye Candy : Why Whimsy
Last edited by coaster on Mon Jun 25, 2007 11:45 pm; edited 1 time in total |
|
Wed Jun 20, 2007 12:35 pm |
|
|
bijan814
Full Member
Cash: $ 12.40
Posts: 73
Joined: 25 Jul 2006
|
to raise credit score
1. Always pay on time or ahead of time.
2. maintain low balances on credit cards
3. keep your total potential debt to earnings load low - If you have a card with a $15000 credit line, you may ask them to reduce it to something more realistic, like $5000.
4. I was told by an underwriter that having just two cards, a major credit card (VISA, MC) and a consumer card (Sears, best buy, etc...) is the best mix for revolving credit.
5. You should have a recent history of both installment or term (Car or house loans) and revolving credit.
Search Engine Optimization-first page guaranteed
|
|
Mon Jun 25, 2007 11:34 pm |
|
|
coaster
Senior Advisor
Cash: $ 1358.20
Posts: 6687
Joined: 11 Oct 2005
Location: Wisconsin
|
Sorry, my hyperlink doesn't work; apparently BBCode chokes on the parentheses. Just copy and paste into your browser's address bar. And then you'll learn that ... quote:
Originally posted by bijan814
3. keep your total potential debt to earnings load low - If you have a card with a $15000 credit line, you may ask them to reduce it to something more realistic, like $5000.
... actually is not a good idea. I know it's counter-intuitive, but maintaining the high credit line while keeping a zero or low balance will help your score, because: quote:
Originally posted by Wiki article on how credit is scored
30% — the amount of debt, expressed as the ratio of current revolving debt (credit card balances, etc.) to total available revolving credit (credit limits)
So, the $15K credit line is better for your score than the $5K credit line, given the same balance. 
~Tim~
Eye Candy : Why Whimsy
|
|
Mon Jun 25, 2007 11:49 pm |
|
|
|
