What are credit scores?
-There are three major credit reporting agencies: Trans Union, Equifax and Experian.
-The scores range from 336 to 850 (higher is better)
-Not all creditors report at all and some only report to 1 or 2 of the agencies, not necessarily all three. This is why the credit scores range from one agency to the next as the may all have completely different information.
-For the general population, the following is how credit scores break down:
-35% based on payment history
-30% based on amounts owed
-15% based on length of credit history
-10% based on new credit
-10% based on types of credit in use
-79% of credit reports contain errors. These errors can result in:
-higher rates on loan
-higher insurance premiums
-may affect employment opportunities
-Tips for building and maintaining positive credit.
-apply for at least one credit card
-do not apply for too much credit in a short period of time (too many inquiries)
-have a good mix, two credit card accounts every one installment loan
-never charge more than 30% of your credit limit on a credit card
-do not dispute items on line
-request the credit agencies stop selling your information to solicitors by opting out.
Go to optoutprescreen.com or call 888-567-8688. If you opt out on line, this prevent your
Information from being sold for 5 years. If you print out and mail the form, it is a permanent .
For more information go to www.how-to-buy-sell-foreclosures.com/credit-scores-good.html