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"CREDIT SCORE WIZARD" will pull your credit report and analyze your credit history.
Understanding Credit Scoring
For your "Free Annual Credit Report" click here . . .
CREDIT SCORING HIGHLIGHTS:
- By definition, a credit score is a mathematical model that evaluates many types of information in a credit file. It indicates the likelihood that a person will make payments on time. The higher the score, the less the risk.
- Various factors determine a credit score. – see below
- Each factor carriers a certain percentage that determines a credit score.
- Credit Scores vary from industry to industry – Each have their own criteria. This is based on the mortgage industry model to calculate your credit score.
35% Based on Payment History
- Recent Delinquency, Frequency, Severity
30% Revolving Debt Ratio
- Credit Cards / Department Stores – Balance 33% of Credit Limit
15% Credit History
- Number of Credit Cards / Length of time opened.
10% Inquiries
- 7-10 inquiries for that 12 month period permitted.
10% Types of Credit Trades
- A mix of types of trade is a positive factor. (Mtg, auto loans, credit cards)
FACTS YOU SHOULD KNOW
Payment history on your credit file is supplied by credit grantors with whom you have credit. This includes both open accounts and accounts that have already been closed.
Payment in full does not remove your payment history. The length of time information remains in your credit file is shown below:
Credit Accounts: Accounts paid as agreed remain for up to 10 years
Accounts not paid as agreed remain for 7 years
Collection Accounts Remain for 7 years
The time period listed above are measured from the date in your credit file shown in the "date of last activity" field accompanying the particular credit or collection account.
Courthouse Records Remain for 7 years from the date filed, except: Bankruptcy-Chapter 7 - 11 remain 10 years from the date filed. (Credit Accounts 7 yrs. from date of last activity). Bankruptcy-Chapter 13 non-dismissed or non-discharged remain 10 years from the filed. Unpaid tax liens remain indefinitely. Paid tax liens remain for up to 7 years from the date released.
New York State Residents Only: Satisfied judgements remain 5 years from the date filed; paid collections remain 5 years from the date of last activity.
California State Residents Only: Unpaid tax liens remain 10 years for the date filed.
A divorce decree does not supercede an original contract with a creditor and does not release you form legal responsibility on any accounts. You must contact each creditor individually and seek their legal binding release of your obligation. Only after that release can your credit history be updated accordingly.
There may appear to be duplicate accounts reporting in your credit file. Please review it carefully as some credit grantors issue both revolving and installment accounts using similar account numbers. Another reason why an account may apperar to be reported twice is that when you move, some credit grantors transfer your account to a different location and issue a new account number.
The balance reported is the balance on the date the source reported the information. Credit grantors supply information on a periodic basis, so the balance shown may not be the balance you know it is today. If the balance reported was correct as of the date reported, it is not necessary to investigate the balance on that account.
For SECURED CREDIT CARDS please visit website: www.securedcardcenter.com or www.clarkhoward.com
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