As the subtitle suggests it is not the lenders who control your ability to obtain credit. It is you. This infographic is one of the best out there, just like our credit repair reviews are wonderful at helping consumers find the right credit repair company. It uses more than one source and provides an array of information that proves the lender is not in control of your credit scores.
- 47% of consumers believe that the creditor has the power to determine credit scores
- Credit scores are determined by a formula:
- 35% of score is payment history
- 30% of score is the amount owed
- 15% of score is the length of history
- 10% of score is new credit
- 10% of score is types of credit used.
- There are various factors that make up each part of the formula.
- Payment history includes bankruptcies and length of time the payment is late.
- Total amount owed should not be the greater portion of income.
- Several recent inquiries or new credit accounts opened fairly recently negatively impact score
- Has the account bee sitting dormant for a long time, or has there been any credit activity.
- There are ways to improve your score
- Pay on time.
- Use less than 90% of your credit score
- Longstanding accounts are good for your score
- Having various different accounts shows the creditors that you can handle a variety of credit sources.
- Avoid tunnel vision?.many factors make up your score.
Creditors take the whole of your financial decisions and determine if they want to extend you credit, nor do they figure your score. Your score has already been counted before the creditor even sees it. You can have higher scores if you take smart, calculated actions to improve your credit. Get your credit report before you think about applying for credit, and use your report.