Your website is good

Hi Jack

Welcome to the forums. Thanks for appreciating the hard work given in this site. We believe in delivering unbiased information and quality results to our customers and visitors. We will continue with the same hard work and believe in satisfying your requirements to the maximum.

A credit score is a value that is assigned to several criteria and is used in making the lending decisions. Now, credit score is based on the scale between 300 to 850. A large number of people fall in between the scale of 600 to 800. It is expected that a score of 720 is fruitful in acquiring your credit worthiness. This score provides the most favorable interest rates in mortgages, credit cards and other loans.

The credit scores look into your credit report and see your financial transactions. Then they plug into some formulae. This way, they calculate a value representing the amount of risk you pose to a lender. Comparing this value with other consumers, they extend the amount of credit to a person.

There are three main credit bureaus that provide the credit information of an individual and based on that, the credit score is calculated: TransUnion, Experian and Equifax.

Regards
Roxette

[quote=MoneyJack]Thanks for such good information, your website is truly very useful.

I have just one query, how is credit score calculated?[/quote]

Thank you for appreciating the work that we do here. We try to provide you with the best information so we could level the playing field for the consumers. Many people do not know where to turn to when they have debt collectors harassing them or when they need advice about dealing with debt. So, we are glad to provide this service for the public.


Now as per your question, there are many variables that go into your credit score. I will try to break it down for you generally. Now speaking generally, Your past payment history accounts for 35% of your score. This part of your score is affected by your timeliness with you payments. Do you make your payments on time or are you always late.


The amount of money you owe counts as 30 percent of the weight. That basically refers to your cumulative balance for all of the credit you hold. If you are able to deal with making payments for a large credit balance, this would benefit you.



In addition, the next largest part of your credit score involves the length of time that you have been in the system. This makes up 15% of your score. Therefore, for those of you establishing new credit, it may take a few years to see your score rise even if you are great with credit. You have to establish your credit history.



Therefore, I have given you the three most significant factors. So, you should try to work on these features of your credit score so you can start to improve it.