How Agencies Calculate Credit Score

What Is good credit score ratings? You might ask yourself how some agencies calculate your credit score, and it is really made up of many pieces of information.

First, and most important is your payment history, which can be up to 2 years on any report, and this counts for up to 35% of your score.

Secondly, is your credit history, and how many times it has been requested. This counts for up to 10% of your credit score. Having too many requests, may reflect badly to some, and not to others.

Thirdly, is potential problems in your credit history, like bankruptcies, and this counts for up to 30%.

Adding these up is only about 75% of your credit, the rest is reflected in your credit history solely and how long you have had credit. A really good credit score is 850, low and possibly bad credit, is 350, with the most average being halfway between, or closer to 750.

Checking your credit reports regularly, and some states allow you to get a free credit report from the 3 major credit reporting agencies for free at least yearly. Checking your report, and reporting truly false, and incorrect information will help you, and the agencies know what is wrong on your report, and help you fix it.

I have reported errors in my reports in the past, and some agencies will send you a packet to fix your report. Doing these steps will help you get better credit. Trying not to get into debt, that is something that can be hard in this day and age, but, being careful with your credit, that can last a lifetime.

Not going bankrupt, and trying to stay up to date on your bills, even utility payments will improve your credit.

If you are married, sometimes your spouses credit score may effect yours, or vice versa. If your credit is good, and theirs is not, helping them fix their credit will reflect better on both of your credit reports.

In my case, my credit is not as good as my husbands, who is older than me, and has had good credit in the past. We are currently working on mine. Some states allow you to get credit reports for free yearly, so take advantage of this, and see what yours says. I will be doing this again on our reports soon, since I am sure some information will need changing. Louis Zhang, Ezcreditscoring dot com