| In the United States, your credit score is everything. It is | | | | * Capacity used |
| something that you should take care of. If you don't, | | | | This will amount to 30% of the calculation of your |
| getting a phone, cable or gas line hooked up in your | | | | credit score. It will contain a ration between the current |
| home can be difficult to do. | | | | revolving debts to total available revolving credit. If you |
| There are also certain companies that take a look at | | | | use your credit card and if you don't use its entire |
| your credit score first before they even hire you. Even | | | | credit limit, you will get a higher credit score. |
| if you are qualified to do the job, a low credit score | | | | * Length of credit history |
| can ruin it all for you. | | | | This will amount to 15% of the calculation of your credit |
| Your credit score is also analyzed by creditors, such | | | | score. |
| as banks and credit card companies. Just try to | | | | * Types of credit used |
| imagine that you need to get a loan to start your own | | | | This can affect 10% of your total credit score. |
| business, with a low or bad credit score, you have a | | | | * Recent search for credit or the amount of credit |
| lesser chance of getting that loan approved or you | | | | obtained recently |
| may get it approved but with high interest rates. | | | | This will amount to 10% of the total calculation of your |
| The same thing goes when you apply for a credit | | | | credit score. |
| card. Credit card companies or banks that issue credit | | | | Surprisingly, not many people know their credit score |
| cards will first take a look at your credit score before | | | | and often end up wondering why they got denied for |
| they can get your application approved. A high credit | | | | their loan or credit card application. You can easily |
| score means that you have a greater chance of | | | | obtain a copy of your credit report by requesting for it |
| getting the best credit card deals with a lot of features | | | | from the three major credit reporting agencies. The |
| and also with low interest rates for your every | | | | law allows you to order a copy of your free credit |
| purchase using a certain credit card. | | | | score from each of the nationwide consumer reporting |
| Even if you are applying for a mortgage, a car loan | | | | companies every 12 months. How can you find out |
| and other kinds of loans, your credit score will play a | | | | what your credit score is? |
| very important role in it. This is why it is very important | | | | * On the web |
| for you to have a high credit score and maintain it that | | | | Visit |
| way or increase it. | | | | * Via toll-free telephone number |
| First of all, you have to understand what a credit score | | | | Call 1-877-322-8228 |
| actually is. | | | | * Via mail |
| A credit score will be a three digit number from 300 to | | | | Complete the Annual Credit Report Request Form and |
| 850. This number will represent a calculation of the | | | | mail it to: Annual Credit Report Request Service, P.O. |
| likelihood of whether you will pay their bills or not. This | | | | Box 105281, Atlanta, GA 30348-5281. You can you can |
| means that if you have a high credit score, creditors | | | | get a copy of the form from: ftc.gov/bcp/conline |
| will be sure that you a better credit risk than someone | | | | edcams/credit. |
| with a low credit score. | | | | You may order your free credit score from each of |
| In the United States, FICO (or Fair Isaac Corporation) is | | | | these nationwide consumer reporting companies at the |
| the best-known credit score model in the country. | | | | same time, or one at a time. |
| They calculate your credit score using a formula | | | | They will be able to provide you with a free calculation |
| developed by FICO. The system is used primarily by | | | | of your credit score every year. It is also a great way |
| credit industries and consumer banking industries all | | | | to find out if there are any errors in your credit report |
| across the country. | | | | that may be causing you to have a low credit score. |
| Credit scores are calculated using the following | | | | You can request it to be fixed in order to let you have |
| factors: | | | | a higher credit score than before. |
| * Punctuality of payments | | | | Always remember that your credit score is an |
| This will be 35% of the calculation. If you pay your bills | | | | important factor of your life. Keep it high and you will |
| on time or before the due date, your credit score will | | | | get better deals on loans, and credit cards. |
| tend to be higher. | | | | |