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Jon Porrey's Blog

By Jon Porrey | Agent in Grand Rapids, MI
  • What are Credit Scores Anway?

    Posted Under: Home Buying in Grand Rapids, Financing in Grand Rapids, Credit Score in Grand Rapids  |  October 14, 2011 12:54 PM  |  425 views  |  No comments

    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

 
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