Credit score secrets REVEALED

Your credit score is the most important number in your life. How much you pay for car and health insurance, car payments, your rent and mortgage payments, house utilities, and even whether you get hired for a job or not, are ALL based on your credit profile and credit score.

PAYMENT HISTORY is the largest aspect of your credit score accounting for 35% of your overall score. This aspect of your total score calculation is based on your over all payment history with your creditors. Late payments, defaulted accounts, and all other NEGATIVE information on your credit report have the greatest effect. The more paid-as-agreed accounts you have and the less negative accounts, the higher the credit score.

The PERCENTAGE of HIGH CREDIT USED is the second most important factor in the entirety of your credit score and accounts for a total of 30% of your overall score. This part of your score is based on the amount of money you owe on your credit accounts related to your high credit limits on those individual accounts. Your scores will be higher if you owe less than 30% of the high credit limit AND, your scores will be much lower if you carry HIGH credit card balances.

Your time in the credit bureau or LENGTH of CREDIT HISTORY accounts for 15% of your credit score. The longer you have had credit accounts for, the higher your credit score will be. As you have more accounts throughout your life time and your credit history grows, your credit scores will naturally increase due to this factor.

How fast you ACCUMULATE NEW DEBT accounts for 10% of your total credit score. This aspect of your credit score is composed of how much new debt you are applying for. It considers how many requests you have for new credit within a 12 month time period. If you have a lot of inquiries in a short period of time, your scores will be impacted.

A total of 10% of your credit score takes into account the “mix” of credit items you have on your report. This part of your credit score is affected by what kinds of accounts you have and how many of each. The bureaus will score you higher if you have an open mortgage, 3 credit cards, 1 auto loan, and a small amount of other open accounts. Any, “unhealthy” account mixes lower your scores such as having too many open mortgages or credit cards.

To obtain your highest credit score make sure you pay your accounts on time, do not keep high balances in relation to your limits on your open accounts, keep a very healthy mix of credit accounts open, and do not apply for too many new credit items in a short period of time.

If you follow the steps in this brief article you will be on your way to an excellent credit score in no time at all. If you have credit problems along the way, give us a call or visit us on line as we are experts in fixing credit issues and enforcing consumer credit rights.

To download more of Ty’s invaluable credit tips and for more information on credit scoring and credit repair for loan approval, please visit www.PerfectCreditFast.com.