| You Can manipulate your credit score........ | | | | Remember that payment history makes up 35% of |
| FICO score which is commonly referred to as your | | | | your score. I know people who were shocked to find |
| credit score will determine whether you are eligible to | | | | out their score was being lowered because they paid |
| receive credit. It is also responsible for the type of | | | | their electric bill late every month! They had no idea this |
| terms and interest rates you will pay on that credit. | | | | was happening! They thought that since they did |
| So.... Don't be left in the dark when it comes to your | | | | indeed pay the bill it was no big deal. Many utility |
| credit score. Just a few points here or there can make | | | | companies do report late payments and it certainly |
| a big difference on whether you are approved for that | | | | does affect your credit score. |
| loan you are looking for. | | | | Pay your bills on time! If you have due dates on bills |
| Credit scores use to be a mystery to us all... Now we | | | | that come right before a pay period for you. Get in |
| are all able to obtain copies of our own credit reports. | | | | touch with those credit companies and explain your |
| There are 3 major agencies that do this reporting - | | | | situation and see if you can change your payment |
| Experian, Equifax & TransUnion. The information | | | | date to a week or so later. |
| from each of these agencies is considered your | | | | Existing Debt - If your debt is high in ratio to your |
| financial history. While these reports don't explain how | | | | income your credit score is lowered. Start paying off |
| your FICO score is computed -- you can see in these | | | | some of those bills. Some folks have racked up a high |
| reports what accounts you have and what is | | | | existing debt because they have gotten deals from |
| considered favorable or unfavorable to you. | | | | lenders of zero or low percent interest. If you want a |
| Your FICO score is calculated from the credit reports | | | | higher FICO score you will need to start lowering your |
| of the 3 agencies. The areas that are important are;o | | | | existing debt. |
| Payment History - 35% of your score.o Existing Debt - | | | | Age of Credit History - Well you can't change any of |
| 30% of your scoreo Age of your Credit History - | | | | this but - if your credit history is fairly young - the most |
| 15%o New Credit / Inquiries - 10%o Types of Credit - | | | | important thing you can do is make sure you are |
| 10% | | | | paying your bills on time and keeping your debt to |
| So - what can you do about your credit score? First | | | | income ratio at an acceptable level. Stay on top of |
| off get a free report from each of the major | | | | these and as time goes on you will be rewarded with |
| agencies. You are entitled to a free report once every | | | | an excellent FICO. |
| 12 months from each one of them. You can do this | | | | New Credit / Inquiries - Lenders look at any recently |
| right on the internet and be able to download your | | | | opened accounts and they also look at how many |
| report. You can do that is Take the time to go through | | | | inquiries on your account. If a bunch of inquiries show |
| each of these reports. You will see some information | | | | up that could adversely affect your score as it could |
| is different with each agency. | | | | indicate you are frantically searching for credit. |
| First thing to check for is to make sure all of the | | | | Types of Credit - Lenders look at the types of |
| information is accurate. Many times there is inaccurate | | | | financing you have acquired through your history. |
| data in your report which will adversely affect you! | | | | Now - knowing how lenders and banks look at your |
| Payment History - If you reports are showing that you | | | | credit report and the areas that are the most |
| pay your bills late - that really hurts your score. | | | | important - you can take charge of your credit score. |