| Your credit score is what prospective lenders view | | | | amount of credit you have not yet used. Take for |
| prior to you being granted credit. I'm sure many of you | | | | example, someone who has reached the limit on all |
| have requested and viewed your personal credit | | | | their credit cards compared to someone who has a |
| report. It maybe took a while to get your head around | | | | number of different credit cards and has only used |
| the different numbers, entries and scoring process. But | | | | 20%-30% of their credit. Although there is no specific |
| how exactly do the credit reporting agencies calculate | | | | number, once you have used over 35% of your |
| your score? | | | | available limit, this can start to have a negative impact |
| 1) Up to 30% of your score is attributed to the way | | | | on your credit rating. |
| you make your current monthly repayments. As long | | | | 4) We all have a history! Unfortunately, sometimes |
| as you make your monthly payments in full and on | | | | your credit history can work against you. Even if you |
| time, this will have a positive effect. Any late payments | | | | have had poor credit in the past and repaid your debts |
| will have a real detrimental effect on your credit rating. | | | | in full, your report may still have proof of satisfied |
| Just one 30 day late payment can see your score | | | | defaults judgements, etc. You credit report may still |
| drop by over 40 points! | | | | even show that you missed a few payments on a |
| 2) The types of credit accounts you have will impact | | | | loan 2 years ago. So what you have done before, |
| on your score and also the way potential lenders may | | | | may still effect what you can do today. |
| view you. Someone with a mortgage, car loan and a | | | | So they are the 4 Steps to How your Credit Score is |
| couple of credit cards portrays the image of | | | | Calculated. An important point to mention is, whether |
| permanence and dependability, perhaps someone with | | | | you have a poor credit history or negative information |
| a family. You now draw your own conclusions on | | | | on your credit report, there is always something you |
| someone else. This person has numerous credit and | | | | can do about it. There are so many credit repair |
| charge cards and a large overdraft limit. (sounds like | | | | agencies, books, leaflets, websites and information all |
| me!) | | | | available to help you. |
| 3) Your ability to borrow can be determined by the | | | | |