Credit Score is made up of the following:
By: LN on Apr 14, 2012 07:38:12 PM
Credit Score is made up of the following:

A. 35% (1) Payment History (2) Late Payments (3) Collections, and (4) bankruptcies

- Recent - an initial late payment on a credit will adversely affect the credit score, but the further it is away the less impact it has on the score (after 24 months it has least influence).
- Frequency - regular delinquencies may possibly demonstrate a pattern of late payments (adversly affect a credit score)
- Severity - Historical late payments of 30, 60, 90, 120 days will reflect the score.

B. 15% Length of Credit History

 - How long maintained an account = amount of credit cards * number of years
 - Keeping accounts open will help score, Closing will be negative.

C. 30% Debt Balance versus High Credit Limit

 - Credit use refers to the amount of available credit on a specific account
 - A 50% debt balance versus high credit limit = negative effect
 - Reducing a balance below 33% of the high limit = positive effect
 - Increasing a balance above 75% of the high limit = negative effect

D. 10% Types of Trades

    - A mix of trade lines each consumer has influences the make up of credit scores.

E. 10% Inquires
   - Too many inquires lost of 85 points.
   - Can have up to 7-10 inquires
    - Credit Report inquire can reduce up to 5 points
 

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Michael Mordechai YadegariReviewsout of 83 reviews