Don't Do Debt.com

Credit report (II)

Q: How do I get bad credit?

A: First thing's first. Credit score: FICO scores range from 400-800. If you have no credit, you're somewhere in the middle. Your job is to take responsible measures to increase your credit score. Timeliness is godliness in the world of credit and paying every loan (traditional or a credit card, for example) is imperative. Late payments erode your credit. When it comes to credit reports, there are 3 factors to consider: Good credit, debt to income ratio, bad credit.

Credit Reports (I)

You've got questions about money, I've got answers.
Let me start with a brief Q&A on some basics:

Q: What's a credit report?

A: A credit report is a resume of your finances, if you will. It contains your name, address, social security number and some employment history. A credit report combines a mix of types of credit in use, new credit (and inquiries for new credit), length of credit history, amounts owed, and payment history to give you a "score". A high score on a credit report will result in lower costs to borrow money and other benefits. A low score will result in higher costs, and sometimes inability, to borrow money. A credit report contains all accounts open, closed or cancelled in your name. A credit report also reflects bankrupticies, liens, evictions and other delinquencies. Information appears on your credit report for seven years (except bankruptcy, which reflects for ten years). High debt to income or bad credit can be extremely detrimental in your future, yet, it's very simple to avoid this scenario.

Q: What's the big deal about your credit report?

A: A credit report is more influential than ever before.

Credit Score Ingredients: Mix of Success

If you your credit was pulled today, do you know how you'd stand? Good credit? Bad credit? How's your debt to income ratio? Do you know what's bringing your credit down or pushing it up? A report recently across my radar suggests that a FICO score is comprised of the following:

10% Type of credit in use
10% New Credit
15% Length of Credit History
30% Amounts Owed
35% Payment History

Payment history is highest in the mix: Late payments erode your credit score. Period.