Myths and Truth about Credit Scoring
Credit score is the key factor determining approval of almost any type of credit. It is based on the information contained in your credit report files. The widely used FICO score was developed by Fair Isaac Corporation, and it is a formula which assesses your potential credit risk.
The information used to calculate credit score can be broken down into five major parts. Your payment history with banks and other lenders will account for 35% of the score, the amount of money you owe for 30%, and the length of your credit history for 15%. New credit and a statistical assessment of how healthy your credit mix is will both account for 10%.
Credit score is not based in any way on the following information:
- references to debt management or credit counseling programs.
- person's marital status.
- current employment status, including how long with the same employer.
- credit report inquiries made by you, employers, insurance companies, or banks if made without your knowledge.
- what interest rates are charged on your credit cards, etc.
- public assistance received.
- person's age.
- child or family support received.
You can increase your score by:
- always paying bills on time.
- paying off or reducing credit card and other debt.
- keeping old, unused credit cards, departments store cards and other "revolving" credit accounts open, even if you don't use them.
- not applying for credit very often.
- correcting mistakes on your credit reports.
Banks decisions are made according to their own standards.
While the majority of lenders use credit score as a key factor in approving credit, other facts play their parts as well, among them: your income, employment status and length of time at present address, to name a few. Each bank has its own standards. What score is acceptable for a particular loan or credit product depends solely on a lender. The person's credit score might not be high enough to get credit with one bank, and perfectly acceptable with another.
More about credit score and tips on improving your credit can be found at: How Much? - Comparing financial products.
Senior staff member for How Much?
http://www.howmuchanswers.com/
MORE RESOURCES:
 China Daily | Credit default swaps - no central exchange, no regulator and no ... The Age, Australia - The Big Four banks are all exposed to the default of Lehman Brothers via credit default swaps (CDS) - a noxious bull-market derivative that threatens more ... Lehman CDS auction fears allayed guarantee lifts confidence Stormy Weather In The Credit Default Swap Market |
 KIMA CBS 29 | Credit card market tightens Tampabay.com, FL - By James Thorner, Times staff writer Will credit cards land the next punch to the gut of our bruised financial system? As home values fall and unemployment ... Is the era of easy credit over for the long haul? Are Credit Cards The Next Credit Crunch? CreditCardCity.com Launches Credit Card Blog to Keep Consumers ... |
 Emirates Business 24/7 | Fear Factor Slate - The right blames the credit crisis on poor minority homeowners. This is not merely offensive, but entirely wrong. In 1907, one man saved us from financial ... Who killed Wall Street Stock markets end week of credit crunch worries High anxiety rules Wall Street as global credit crisis deepens |
 CTV.ca | Wall Street stocks soar, Dow gains 936 points CTV.ca, Canada - Wall Street bounced back Monday from a week of falling stocks, after North American and European leaders agreed on plans to tackle the worldwide credit ... G7 vows to fight credit crunch but details sketchy G7 Offers Guidelines for Staving Off Crisis G7 pledges to battle financial crisis |
 Vancouver Sun | FOREX-Dollar, yen fall as credit markets ease; euro rises Reuters - "The whole idea that the dollar is benefiting from frozen credit markets is now starting to dissipate," said Brian Dolan, chief FX strategist, at Forex.com ... New global crisis plans should thaw credit markets FOREX-Euro, sterling rally as Europe pledges to rescue banks |
Maxim: AmTech Upgrades, Credit Suisse Downgrades Barron's Blogs - On the other hand, there’s Credit Suisse’s John Pitzer cut his rating on the stock to Neutral from Outperform. “While we had previously expected MXIM to ... Downgrading Maxim Integrated Products to Neutral; lowering price ... Maxim shares jump with rest of Wall Street Maxim Integrated Products Expects Q1, Q2 Revenue Below Consensus ... |
Tampa Bay Federal Credit Union Gets Approved for $500000 in ... MarketWatch - Dale Schumacher, CEO of TBFCU said, "With headlines focused on the $700 billion bailout plan, we are one of the few credit unions in our community that was ... US Plans $250 Billion in Bank Equity, Person Says (Update2) |
 The Associated Press | GM Likely to Seek Direct Loan From Fed Barron's - Reserve Banks currently do not establish an interest rate for emergency credit, but Regulation A specifies that such a rate would be above the highest rate ... Credit unions ready to lend: As banks tighten credit, credit ... Credit markets see a few, tentative signs of thaw Banks must reveal full exposure to sub-prime |
 Miami Daily Business Review | Global Credit Crunch: Implications For Nigeria LeadershipNigeria, Nigeria - Nancy Pelosi, speaker of the US House of Representatives, summed up the cause of the current global credit crunch in a very few words during her opening ... World May Be Lucky to Get Worst Recession Since 1983 (Update3) EMERGING MARKETS WEEK-All eyes on US and Europe for direction ANALYSIS: Action plan to help Europe escape the worst of recession |
SAFE Credit Union customers to test Intuit online program Bizjournals.com, NC - SAFE Credit Union in Sacramento is being tapped as a test institution for a new online program by Intuit Inc. called FinanceWorks that allows the credit ... |
Credit - Google News
Fair Isaac Corporation Credit or FICO Score
As I am not from the US, I had no idea what FICO meant before researching it. FICO stands for Fair Isaac Corporation, a company based in California.
What is a Bad Credit History?
A bad credit history can sometimes seem like a curse..
The Easy Way To Gain Access To Your Free Online Credit Report
When you apply for credit, those lending you the money want to know if you are going to pay them back. One way they decide if you are a good risk is to see how you've dealt with other people's money.
Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards
Secured Credit Card is similar to a prepaid credit card since the funds you are using are actually yours and not the issuer of the credit card. Generally people who apply for secured credit card or prepaid credit card are people with poor credit or unemployed.
How You Can Avoid Becoming A Victim Of Identity Theft
To reduce or minimize the risk of becoming a victim of identity theft or fraud, there are some basic steps you can take.The most important one is to ask periodically for a copy of your credit report.
Looking for that Low interest Credit Card?
If you have been shopping around for a Low Interest Credit Card you will notice that the UK market is awash with Credit Card companies offering low rates to entice you to apply for their Cards.There has never been a better time to consolidate your credit cards and get a far better interest rate.
ChexSystems: Who They Are and How it Affects You
ChexSystems is a company that maintains a subscriber membership service used in the banking industry. The members consist mainly of Banks, and Credit Unions, but can include other types of Financial Institutions.
All Is Fair In Love, War, and, Your Credit Report - At Least It Should Be! Understanding the FCRA
Fact: Over 150 million Americans have credit report with the three major credit reporting agencies. Approximately 50 million of these credit reports contain errors, many of which are inaccurate.
Automobile Credit Report
When applying for a loan to purchase a car, the lender will want to take a look at a person's auto credit report. Credit reports tell lenders all they need to know about granting a loan to all applicants.
All About Balance Transfers
What is a balance transfer?A balance transfer can be explained simply as a balance transfer! When a balance is transferred usually from a credit card, but possible from a bank account or loan to a credit card with a offer interest rate (usually 0%) for a set period. It does not have to be the entire amount.
Negotiating Rates with Your Credit Card Company
Ok, let's face it, everybody hates high credit card rates, and they drain hard earned money out of your wallet. As a valued consumer, it is apparent that you learn how to negotiate to get the absolute best rate that you possibly can.
Are you paying higher interest on your credit cards than you think?
Many credit card holders sign up for a credit account with an 8.9% interest rate and then later realize that their interest rate has been bumped to 27.
What You Should Know About Credit Counseling
Credit counseling is a free service that many people with money problems have turned to in the face of financial ruin. Credit counseling companies negotiate with your creditors to reach financial solutions that benefit both you and your creditors.
Credit Card Is Adding The Silver Lining To Your Pocket
In the new millennium plastic money or credit cards has rendered a new zing factor to your pocket. This has not only made you economically more flexible but subsequently added glamour to your financial image as well.
Credit Report And Correction Techniques
The three major credit bureaus, Experian, Equifax and Trans Union are similar and feature a "Credit Score", which is created from credit report data submitted to them about you. Their report includes where you live, your bill-paying habits, and bankruptcy and arrest information.
Good Credit is King, When Qualifying for Mortgage Programs
If you want to purchase a new home or refinance your current mortgage, be sure to check out the wide array of loan programs available. If you have less than excellent or even poor credit, you can still qualify for a loan.
What You Need To Know About Credit Cards
What is a credit card? A credit card is a card that allows you to borrow money to pay for things. There will be a limit to how much you can spend called your credit limit.
How to Deal with Hire Purchase Debt
WHAT IS HIRE PURCHASE/CONDITIONAL SALE?Although people often talk about "buying on HP", Hire Purchase Agreements are quite unusual these days. Cars are the most usual goods sold under Hire Purchase or Conditional Sale Agreements.
How To Repair Your Credit Report
A credit report is run on a buyer when he or she needs to buy something that will take a long-term loan, such as an automobile or a house. The credit report can come from one of three agencies - Equifax, Experian, and Trans Union.
SuperCharged Secret 3, Credit Card Utopia
TURBO-CHARGED KILLER RATE SAVING INFORMATION!Let's just take a brief moment to recap:If you've been following along on this journey with me, learning the 5 Super-Charged secrets to Credit Card Utopia, then you now know 2 very important things:You now know how to take advantage of zero to low interest credit card offers.You now know that there is safety in numbers, and you know the magic "Who's Who" of the major credit card companies.