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How credit score is calculated?
How credit score is calculated?
How credit score is calculated?
How credit score is calculated?
How credit score is calculated?
How credit score is calculated?
How credit score is calculated?
How credit score is calculated?
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How credit score is calculated?

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Know accurately how credit scores are calculated and what really affect your credit score and how much.

Know accurately how credit scores are calculated and what really affect your credit score and how much.

Published in: Economy & Finance, Business
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  • 1. How Credit Score is Calculated?
  • 2. Credit score calculation Model
  • 3. Payment History is 35%Payment historyhas the highestimpact on yourcredit report Advice : Pay your bills on time
  • 4. Amount Owed/Debt to limit Ratio is 30%Lenders and credit bureaus lookat the amount of debt you owerelative to the amount ofavailable credit. Advice: Keep your credit balance low
  • 5. Length of Credit History is 15%Short history is lookedat as a credit riskbecause there’s noproven record. Thereis no reason to everclose any accountbecause the longer theaccount is open themore it helps increaseyour score. Advice: Keep your old accounts open
  • 6. Types of Credit Used is 10%Credit bureauslook at how manydifferent types ofcredit youcurrently use andhave used in thepast, such ascredit cards,mortgage, carloan, retailaccounts, etc. Advice: Manage different types of accounts.
  • 7. New Credit is 10%Too many creditapplications mean thatyou are taking lot of debt& are in financial troubleAdvice: Don’tapply for multiplecredit lines.
  • 8. Check your credit score on regular basis & Keep it high for a good financial life Info Source: www.Creditscore.com

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