How credit scoring works and what it really means to your credit rating.

35% of your credit score is your payment history!

Your payment history is the biggest factor in how your credit score is determined. Late payments, charge-offs, collections and other delinquencies will affect your credit score most. This is one of those contortions we read about on the previous page! So paying on time will go down a lot easier!

Budget your money so you can at least make the minimum payment on time and make another payment later to get your debt down. this is a lot easier than you think and self control will become a good habit and you will forget your even doing it! (Trust me on this! I was a person with lot of bad habits until I got tired of swallowing the egg!

I was going to find out how credit scoring works!

30% of your credit score is the amount of debt you owe!

The amount of debt you owe is the next factor in determining your credit score. A creditor begins to get worried if your income is used to pay back more than 45% of your debt. This means you may not be prepared for an emergency should one arise.

The amount of debt you owe is the size of that egg! Think of this as gaining weight. Some weight can be a good thing and a large weight, like a home purchase, is a good egg to swallow. The investment will often return a lot more than you may realise in tax advantages and equity savings!

A large weight that is not good would be buying a $50,000.00 Jaguar while living in an apartment or paying rent! Think hard! What do you want in that egg?

15% of your credit score is the length of your credit history!

Creditors want to see patterns of spending and repaying debt before granting you a loan or any kind of credit. The longer your credit history is, the better interest rate and type of credit will be available to you. For those just starting out, this will be a jumping off point.

Start with one or two credit cards the first year and don't max them out and make your payments on time. Lenders know how credit scoring works, they wrote the book and they will be watching you closely here!

10% of your credit score is new credit lines!

How often you apply for new credit will affect your score too. If you apply for too much credit in a short period of time your creditors might see this as you not being able to manage your payments and this will make your credit score drop dramatically!

This was one THUD I told you about on the previous page that was heard in Salt Lake! If your looking for credit and go with a credit card finder service for instance. most of these will pull your credit only once and send it to every lender so your score doesn't drop so hard. In fact, this type of application usually doesn't make your score go down at all if your not applying everywhere at once. I added weight to the THUD this way!

10% of your credit score is the types of credit you have!

A home mortgage is the best type of credit to have because you have an asset to guarrantee the repayment of the loan should you default on your obligation. What if you don't have a home loan yet? Then treat your credit score like a million dollars! Establish good credit now and it will reward you with a great interest rate on a home loan later.

A home will be the biggest expense for most of us and the greatest asset we will ever own. A piece of real estate is the biggest investment that most of us will make in our lifetimes and the best one to keep up with the pace of inflation.

This is how credit scoring works and the more you know, the better it gets. Do you know what your score is? You could find out now! .................................................................

With this information, you will see what most lenders of all kinds from auto loans and credit cards and even mortgage bankers see. This is a great tool to have in your corner! Most people fail to recognise it's importance and underestimate it's uses.

This makes that egg tastier and much easier to swallow when you see how it works! If you have the right kind of debt, this tool is the chocolate fudge topping on your ice cream sundae!

Now does it make sense how credit scoring works?

Click here to go back to the first page of how credit scoring works. Credit card offers are not always what they seem and how do you know if the credit card your applying for is right for you? Wouldn't it help to know that the credit card you want and need is one made for those with bad credit? This website below is here because YOU have decided to clean up your credit and your life and I can'y possibly tell you how good it feels really know how credit scoring works and to be able to get the credit card you really want.

And the car loan you really want or the installment plan you really want! My installment plan recently contacted me and told me that they were offering me a chance to drop my interest rate from 15.9% to a lower 3.9% if I bought an extended warranty for my Heating and Air Conditioning unit for 2 more years at a cost of $59.95!

Now it didn't take a math genius to see that I could get extended warranty coverage on a major appliance costing $5000.00 on a 5 year loan to realise how much I could save with an interest rate of only 3.9%! This is supposed to be how credit scoring works and you can make it work for you by playing the game! There are cards for ALL types of credit, including those with no credit history and some even come with guaranteed approvals! If you learned anything here is how profitable it can be to you to get my RSS feed and to get MAD and fight back!

When you get credit, and you will get credit again, clean up your report and dispute all unfair and misleading items from your credit reports. Having credit open to you while doing this will make your score go up!

How credit scoring works is not really that much of a mystery once you learn how to manipulate the system to your advantage and you don't have to do anything illegal!