What is a high score and how can you get there or how can you keep it there?undergo your reason - conception ii

That’s it. That is all that is used to determine your credit score. That is also the difference from having a 785 score vs. a 563 score. Nothing else enters into the equation. Now with that said your age does matter. If you are 20 years old and just establishing credit as opposed to someone who is 57 yrs old and has had credit for the last 35 years, the 20 yr old doesn’t have the “credit history” (15% of score) and probably not the type of credit either (10% of score) it your 20 and have a credit card chances are it has a low credit limit ($500 to $1000) and most of what I’ve seen are close to the limit (30% of score).

4)      Type of credit. A mix of revolving, installment and mortgage. (10 % of your score)

5)      Inquiries. Every time someone pulls your credit report. Generally fall off after 6 months (10% of your score)

More about your scores and credit coming up.

So review your credit report, pay your bills on time and pay off but don’t close your credit cards and up your score.

The three major credit bureaus, Equifax, Experian, and TransUnion use what is referred to as FICO. This is a scoring model that determines the likelihood of repaying the loan in the next 24 months specifically. There is a newer model just introduced called VantageScore. It is not used much yet and still uses the same criteria as FICO. The scoring model is not important, the components are almost the same and don’t reflect some of the factors that most people think determine their score. Your job, income, home, marital status, age, sex, religion etc. have little if nothing to do with your credit score. There are only five factors that are used to determine that score.

1)      Pay your bills on time. (35% of your score)undergo your reason - conception ii

2)      keep balances on credit cards low or paid off, (30% of your score)

3)      Credit history. The length of time you’ve had open credit. (15% of your score)

Don Davis

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