How is your Credit Score determined?

Sponsored Links

As mentioned on our mainpage, your credit score is composed of 5 different factors. Below are more detailed explanations of what these factors consist of:
1. Your payment history: People that have not made payments in the past usually have a tendency to not make payments in the future either.
2. Way Credit has been used: Somebody who always maxes their credit cards out, or is usually close to that limit, is supposed to be a bigger risk for lending companies, compared to people that don't use up their credit card limits.
3. Age of credit file: It is assumed that people who have had credit for a long time are less of a risk, compared to people that are just getting their first credit approved.
4. Number of times a person asks for credit: Asking many times for a credit card, loan or mortgage in a short period of time will negatively impact your credit score.
5. Your mix of credit currently in use: Someone who has only one credit card is considered riskier than someone who has a combination of rolling loans and installments.

What does your Credit Score mean?

In order for you to find out what your credit score means, we are offering a categorization of the possible scores. See in what category your score falls, and you will find out what lenders will think about you. Don't know your score? Get a FREE creidt report.

660 and above
Your credit score is rated "acceptable", which basically means that you have good credit and your credit files will only have to go through a basic review when you are applying for your loan. You will usually find your loan quickly and should also be offered a competitive interest rate.

620 to 660
The credit report companies classify your credit risk as "uncertain", which means that you still have a good chance at getting your loans, but your credit history will have to go through a thorough review, and you might be asked to provide some additional documents to the lender, before your loan will be approved.

Below 620
This score indicates "high risk", which means that you might have a difficult time to obtain traditional financing. It doesn't mean that it will be impossible, it will just be a lot more difficult, compared to people having a higher credit score.

How to improve your Credit Score

Doing the following things will help you improve your credit score and should allow you to receive the necessary financing:

1. Pay your bills on time and stay current.
2. Keep balances as low as possible on credit cards and on other revolving credit.
3. Pay off your debt instead of just moving it around.
4. Don't close your credit cards as a short term strategy. 
5. Don't open new additional credit cards, just to raise your available credit.
6. Apply for and open new credit accounts only as needed
7. Remember that it's ok to check your credit report. You should always keep an eye on your credit. So, get your creidt report today from one of the providers listed on our homepage.

Sponsored Links

Get Free Credit Report Online Home | Credit Score

Copyright 2003 - 20010 © by