Understanding Your Credit Score

Understanding Your Credit Score Your credit score is a number that helps creditors gauge your cred- it-worthiness. It is a measurement that tells them whether you're likely to pay back money lent to you according to the agreed upon terms. How is Your Credit Score Figured? Lenders look at scores from three major credit bureaus, and they base their scores on slightly different factors, meaning you may have a differ- ent score with each credit bureau. FICO scores are most commonly used, and they base their scores on five factors. Here's how they count towards your score. FICO FACTORS Payment History 35% Credit Utilization 30% Length of Credit History 15% New Credit 10% Credit Mix 10% What Does Your Score Mean? So, you've got your score. What does it mean? 300 850 >350 = No credit 670-739 = Good credit 350-580 = Bad credit 740-799 = Very good credit 800-850 = Exceptional credit 580-669 = Fair credit Tips for Boosting Your Score Be patient; If you're just beginning to build credit history, it'll take time. • Make all payments on time. • Pay down balances or redistribute them to lower the percentage of utilized available credit. • Diversify the types of credit on your report. OLoans Now www.unsecuredpersonalloansnow.com