Monday, January 7, 2013


Credit scores help lenders, employers and landlords land quickly assess if you are a good credit risk and can keep your financial affairs in order. Companies use credit scoring information from your credit reports to determine your score, and each has different criteria for its calculation.However, it is calculated, a good credit score is always the product of a long-term use, credit responsibly.

A good credit score
A credit score "good" depends on both the system of credit scoring, and the criteria set by individual credit from suppliers. In the system of credit rating FICO scores above 700 are generally considered to be good, with scores over 720 very good, according to Elizabeth Razzi Kiplinger's website. The Vantage Score system is different, with scores between 800 and 899 classified as credit "B" and scores over 900 as "A" credit, according to the Experian site.


The credit card companies, mortgage lenders, banks or owners may have their own standards for what a credit score of "good" is, therefore measures FICO and Vantage Score are simply guidelines. If you worry whether your credit score is high enough for a lender in particular ask what criteria they use credit.

Keep balances low
Just because you have a high credit limit does not mean you must use it all. Scoring systems consider your credit balances and can lower your score if you are too close to your limits.Regardless of whether you make your monthly payments on time, credit scoring companies evaluate your use of credit separately from your payment history. You protect your credit score by keeping your balances below 30% of your available credit. In the FICO system, use your available credit makes about 30% of your score, while treats Vantage Score how you use your credit and your balance as two separate factors, for a total of 32 percent of your score.

With credit for some time
Over your credit history, the better. Although there are horror stories about college students getting into debt because of credit card programs for students, it is a good idea to start using credit to start. Responsible use of credit at the College may make it easier for a person to get a mortgage or car financing later.

Make payments on time
Make payments by credit card on time is essential to develop a good credit score. It is also good for your overall financial health. Late payment fees can cost you a credit card. In addition, if other creditors observe late payments on your credit report, they can increase your interest rate or lower limits your accounts. FICO based full 35 percent. 100 your score on your payments making regular time, while the Vantage Score system account your payment history, 28% of your score.

Various Types of Credit
A mixture of different types of credit can improve your credit score. For example, it is a good thing if you can view the files responsible for payment on credit cards, personal loans and your mortgage. When you have more than one type of debt you show other lenders that you can handle different financial obligations.

Control of credit applications
Demand for credit can lower your credit score, make sure the opening of new accounts. Credit score companies perceive as potential new surveys taken on more of your debt, so your credit score may suffer when you request a new card. Be careful when applying for an apartment, a car loan or even a bank account. Credit checks can cost a few points off your score.