UNDERSTANDING YOUR CREDIT SCORE
  1. Range of Scores

    730 – 830 = A+ or Platinum
    680 – 729 = A
    640 – 679 = B
    600 – 639 = C
    550 – 599 = D
    549 & Below = E

  2. What makes Up Your Credit Score?

    35% = based on payment history (i.e. on-time pays or delinquencies)

    - More weight on current pay history

    30% = Capacity (capacity is King)
    15% = Length of credit
    10% = Accumulation of debt in the last 12-18 months

    - # of inquiries
    - Opening dates

    10% = Mix of Credit

    - Installment (can raise) vs. revolving (can lower)
    - Finance company loans can lower your score.

  3. What Actions Will Hurt Your Score?

    • Missing payments (Regardless of the $ amounts, it can take 24 months to restore credit with one late payment)
    • Credit cards at capacity (i.e. maxing out your credit cards)
    • Shopping for credit excessively
    • Opening up numerous trades in a short time frame
    • Having more revolving debts in relation to installment debts
    • Closing credit cards out (this could lower your available capacity)
    • Borrowing from finance companies
  4. How Can You Improve Your Score?

    • Pay off or pay down your credit cards
    • Do not close credit cards because capacity may decrease
    • Move your revolving debt into installment debt
    • Continue to make payments on time (older late pays will be less significant with time)
    • Slow down on opening new accounts
    • Acquire a solid credit history with years of experience

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