What Makes Up Your Credit Scores?

• 35% is based on payment history (i.e. on-time payments or delinquencies)
• 30% is based on capacity of available credit.
• 15% is based on length of credit
• 10% is based on the accumulation of debt in the last 12-18 months including the number of inquiries and opening dates of credit lines.
• 10% percent is based on the mix of credit (installment debt raises the score and revolving credit lowers the score-the number of finance company loans will lower your score)

What Actions Will Hurt The Score?

• Missing payments (regardless of the dollar amount, it will take 24 months to restore credit with just ONE late payment)
• Carrying your credit cards at capacity
• Closing all credit card accounts (keep your credit cards-just don’t carry balances)
• Shopping for credit excessively
• Opening numerous trades in a short time period
• Having more revolving loans in relation to installment loans
• Borrowing from finance companies

What Doesn’t Affect The Score?

• Debt Ration
• Income
• Length at Current Residence
• Length of Employment

Approximate Credit Weight For Each Year?

• 40% = Current to 12 Months
• 30% = 13-24 Months
• 20% = 25-36 Months
• 10% = 37+ Months

How To Improve The Score?

• Pay down on credit cards
• Do not call close credit cards because capacity will decrease
• Continue to make payments on time (older late pays will become less significant will time)
• Slow down on opening new accounts
• Acquire a solid credit history with years of experience
• Moving revolving debt to installment debt.