WHAT'S YOUR CREDIT SCORE?! ------------------------------------------------------------------------------------------------------

This is abstracted from a WSJ article dated Nov 19-20. In U.S., your credit score is an important piece of info on you.

FICO Credit Score (Range:300-850) Factors:

(It is a snapshot of a person's creditworthiness at a particular moment. Lenders, Cell-phone providers, Insurance companies and even Employers use it. Above 700 or so is a good score)


35% - Bill Payment History

(Missed payments and 'Paying just minimum' lower your score)


30% - Balances Owed

(Credit Utilization Level or Balance-to-limit Ratio or Percentage of available credit being used for each credit card - It is usually better to carry smaller balances on several cards than to pile everything onto one card. In fact, simply using 50% or more of a limit can decrease the score)


15% - Length of Credit History

(Don't close older credit cards as it increases the length of credit history, even though you are not using them. Also it lowers the balance-to-limit ratio.)


20% - New Accounts and Diversification

(Opening new credit cards frequently makes the person look risky. Consumers with diverse credits including auto loans, mortgages are thought less risky by creditors than those with only credit cards. They feel that consumers well versed in a variety of credit types pose a lower risk.

You can get a free credit report every year of Equifax, Experian, and Transunion each, as mandated by government from www.annualcreditreport.com. Check your report to correct any mistakes in them.  ¶ 8:42 PM 0 comments