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Understanding credit report See 4 Main Factors That Determine Your Score

Posted on Thursday, 18th February 2010 by jkibler

Understanding credit report Read this quickly learn how to save money by understanding what is on your credit report which will enable you to get that loan.

If you’re in the market to buy a new car or maybe a house or even get a credit card or cell phone nothing is going to happen until somebody checks your credit report. Somebody is going to go to one or all three of the credit scoring agencies and check your report.

When people check your credit score they are going to come up with a number somewhere between 300 and 850, which is going to reflect your score.

How your score is determined

1. Payment history 35%. If you do not pay your bills on time your score is going to be negatively affected and the more recent the problem the lower your score. If you had a history of paying your bills late it is very difficult to change overnight, but what you can do is get all of your bills paid up and make your payments on time for three months and then you will see a dramatic rise in your credit score.

2. Outstanding debt 30% everybody’s concerned about how much debt you have as compared to how much money you make. This is called a debt to income ratio and is used by everyone when determining whether or not you are going to be approved for the loan for which you are applying.

3. New credit 20% if you apply for lots of credit lately prospective creditors who are considering extending credit to you may not feel real good about granting you another loan. Lenders are especially concerned about any change in behavior when it comes to your financial situation.

4. Credit history 15% An overall history of all of your loans and whether or not they’ve been paid off or whether they are they are in default and what you’ve been doing to make corrections.

Jimmy says everything it is very important to understand what is going on with your credit report so that in situations where the credit report reflects a bad credit score you can make changes, which will improve your financial situation.

Whoa Jimmy?

Send everyone you know who needs financial increase a link to this site. Increase now

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Understanding credit report is very important and if your have any suggestions in this area please share with our readers in the comments.