Credit Reporting Tips on Credit Reporting
Good credit is a must, but not many know how their credit score is determined. The FICO Score, which was developed by Fair Isaac Corporation, is the most widely used method to determine credit worthiness.
The score is made up of the following factors; these are:
- Payment History
- Outstanding Deb t
- Length of Credit
- New Credit
- Credit Mix
- Credit Inquiries
Suggestion: Get a credit report once a year. Everyone is entitled to a free annual credit report through the official online source www.annualcreditreport.com You may also purchase your FICO score through: www.myfico.com
How to improve your Credit Score:
- Monitor your credit report and dispute errors.
- Pay your bills on time.
- Low balances are a positive factor in scoring models.
- New credit applications can detract from your score.
- Old accounts can help your score.
- Consolidate Balances.
What if there is an error on your Credit Report?
If you see an error on your report, report it to the credit bureau, all three major bureaus in the U. S. Equifax, Trans Union, and Experian all have procedures for correcting information.