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Credit Scores
A Credit Score score is used to determine how likely
a person applying for credit is to repay the debt.
This score is arrived at by taking all of the
information on your credit report and turning it
into a consistent number. The credit bureaus and
Fair, Isaac & Co. do not release how this number is
calculated. The Federal Trade Commission has judged
this to be legal.
Credit Score scores are calculated by mathematical
equations that designate points to different areas
of your credit report. They have developed the
consistency of the score by using all the
information provided by the three main credit
bureaus and studying the results of thousands of
people. Statisticians created mathematical equations
to condense the credit report into a single number.
Credit Score scores consider many elements of your
credit report:
· Late payments
· The length of time credit has been established
· The amount of credit available compared to the
amount of
credit used
· Length of time at current address
· Employment history
· Bankruptcies, charge-offs, collections, and tax
liens
Credit Score creates a score for each of the three
main credit bureaus, so you will have three Credit
Score scores. Most lenders look at the middle score
of the three.
How can I increase my score?
· Pay your bills on time. Missed Payments can
decrease your score dramatically.
· Do not do credit inquiries often. Apply often for
credit will reduce your score. Your score drops each
time a credit inquiry is done.
· Pay off your credit cards. If your cards are "maxed"
out it will decrease your score..
If you have numerous negative marks on your credit
report contact a reputable credit restoration
company like Lexington Law.
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