When you receive a copy of your credit report you will notice that there are a variety of codes pertaining to your specific credit. Each credit bureau has their own codes and the code is an indication of a violation that has dropped your credit score. Each violation reduces your score by a certain number of points yet the exact amount remains confidential. The points are deducted from an initial number that is different for each credit bureau and credit-scoring model.
There are essentially five categories that compose your total credit score.
· Past credit payment history –35%
· Debt ratio’s, or the amount of debt you have compared to your credit limit- 30%
· Length of credit history- 15%
· Types of credit used, such as revolving, installment or mortgage loan – 10-15%
· Recent hard inquiries- 5-10%
Check out this article from Freddie Mac about “how to read a credit report”.
Related posts:
- The Damage Is Done…How Common Credit Mistakes Affect Your Credit Score Most people are fully aware that a late payment or...
- Inaccuracies On Credit Reports It is estimated that as high as 75% of all credit reports contain...
- Questionable Debts And Debt Validation Letters If a debt collector is hounding you about a questionable...
- Should You Repair Your Credit Yourself? You absolutely have the right to repair your credit yourself....
- The Truth About Free Credit Reports While a funny jingle may play out in your head...
