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Originally Posted by Rascus
A good credit score is anything over 600
I'm not sure what a avg credit but i've heard around 660
Above avg is over 700
and i believe 799 is a perfect credit score
Anything under 500 it will be almost impossible to get approved for a car loan and such without a co-signer
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This is incorrect
a perfect score is 850
great credit would consist of anything over 700
average credit is 635-650
anything below 600 would be considered seriously impaired or at one time had been impaired and is now on the road to recovery
As far as credit cards go....you want to keep you balance at or below 35% of your limit and make payments on time.
Here is how credit scores are comprised:
Scoring models include and apply all of the following to determine your score
Past payment performance: 35%
1.the fewer lates, judgements, liens, collections the better. (obviously)
2. recent lates ar more indicative of future default by you than those that occurred more than 24 months ago
3.a 30 day late by you today will have a greater negative impact on your score than a bankruptcy 5 years ago
Using your credit: 30%
1. Low balances on several credit cards are better than high balances on a few cards. Balances should be kept below 35% of the credit limit
2. To many credit cards could hurt you...if you have 10 cards that have a combined limit of 50k...the potential for you to run up those cards is there...creating a debt load that may be unmanageable
Credit history: 15%
1. The longer accounts have been open the better
2.Opening new accounts and closing seasoned accounts will drive your score down
3.A short credit history isn't bad...as long as you don't use credit heavily right away...ease into it SLOWLY.
Types of credit in use: 10%
1. finance company accounts will score lower than accounts you get through banks or department scores
2."90 days same as cash" are generally done by finance companies
Inquiries into your credit: 10%
1. Looking for credit from multiple sources can indicate a higher risk...if several credit cards have been applied for in a short amount of time = high risk
2. PLEASE NOTE: Multiple inquiries regardless of the number for mortgages or cars, in a 14 day period only count as one inquiry.
I hope this clears up any misconceptions with credit scoring...also there are 3 different credit bureau's in the united states.
Transunion which services the midwest primarily
Equifax which services the east coast primarily
Experian which services the west coast primarily
If you need to make a correction on your credit please make sure you contact all the bureaus....even though the service other areas the mistake on your bureau might still be on there and all of the bureaus work seperate from each other so if you correct an error on one...it won't be corrected on the others.
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