Credit companies or anyone granting you credit keep records of your credit transactions. These records are accessible to credit agencies, employers and others who may grant you additional credit.
You will be scored on your credit history by the United State’s three major Credit bureaus which are Equifax, TransUnion and Experian by means of a FICO score. The initials FICO stand for Fair Isaac’s Corporation of the New York Stock Exchange tool that was developed by them to measure a person’s or organization’s credit value. With FICO scores ranging from 300 to 850 the highest scores are 700 to 850.
Achieving this credit ranking requires good payment of your credit bills. Pop up ads on the Internet often advertise opportunities to check your credit score for free. These usually offer one free report annually per each of the major credit bureaus. After that there is a small annual fee for this service. Upon paying this due you can check your credit score as often as you like.
Although credit scores usually stay the same for months so you can do this at your own discretion even though it might be just as well to wait the year out. Creating a credit score of the highest level requires that you avoid delinquent bill payment, pay more than the minimum balance due or pay the charge balances in full. Any or all of these actions lets you maintain a credit score of the highest caliber.
Bringing your credit score up to the highest level can be achieved through consistent payment on time, over payments, paid in full balances and carrying on in this way for a length of time. The longer your credit behavior is good the higher your FICO score will grow. You can not actually see the formula of the Fair Isaac Corporation’s credit analysis but you can know that there are five categories or fields used for reference.
The first field is your payment history which counts for around 35% of the calculation and a review of whether you met prior obligations and for what type of accounts these were met or not, next, counting for about 30% is the amount you still owe, third, is the length of your credit with each establishment with the remaining two fields counting for 10% each.
The two remaining fields include accepting additional credit and what types of credit you have chosen for any of these. Problems in your credit history such as collections, delinquency or bankruptcy will prevent the achievement of the highest credit scores until a length of time passes. And the larger the problem in terms of amount owed and time passing before being resolved the worse that this is.
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