About 10% of your weighted credit report score is based on the kinds of credit accounts you have on your credit report. There are two kinds of credit accounts. Revolving credit, like a credit card, is open ended because it doesn’t have a number of fixed payments. A car loan or a mortgage is known [...]
As you can see, managing your credit report score is a very difficult proposition. We are all being forced to play in a life changing game without ever being given a copy of the rule book. We constantly run the risk of being punished for doing what we think is the right thing or sometimes [...]
When you apply for a loan or a credit card the prospective lender requests a copy of your credit report from one or all of the major credit reporting bureaus (Equifax, Experian, TransUnion) this request is called a hard inquiry. The credit report score computer looks at the number of hard inquiries on your credit [...]
The average length of your credit history accounts for about 15% of your weighted credit report score calculation. For example, if you have a combination of three revolving accounts and credit cards that have been open for 2, 3, and 7 years then the age of your oldest open account is 7 years. The average [...]
It would be nice if everybody had the choice to pay down or pay off their revolving accounts to under 10% credit utilization. 10% is the magic number that will give you the highest credit report score. Every dollar owed that contributes to more than 10% of credit utilization deducts points from your credit report [...]
