simple ways to improve your credit score
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http://www.Cram4You.com Improving your credit score can significantly increase your credit worthiness. So let's discuss a few tips on how to improve your credit score.TRANSCRIPT
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2011 Credit Learning Systems of America
Basic Factors That Affect Your Credit ScoreBasic Factors That Affect Your Credit Score
Tips Improve Your Credit Score
Pay down balances, increase limits Transfer debt to other accounts Pay monthly payments on-time Build new credit Build old credit, or aged credit Use a variety of types of credit Repair mistakes, or hire a pro Paying off all balances will cause
scores to plummet
740-800 Credit Scores are Possible!
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2011 Credit Learning Systems of America
30%
10% 35%
10%
15%
Pay History
Amount Owed
Credit Age
Credit Type
New Credit
Basic Factors That Affect Your Credit ScoreBasic Factors That Affect Your Credit Score
49% of Americans do not understand that credit scores measure credit risk, and 45% incorrectly think that increasing income will increase credit scores.
2005 survey results by Consumer Federation of America and Fair Isaac
Corporation
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2011 Credit Learning Systems of America
30%
10% 35%
10%
15%
Pay History
Amount Owed
Credit Age
Credit Type
New Credit
Basic Factors That Affect Your Credit ScoreBasic Factors That Affect Your Credit Score
Creditors report pay history to bureausPay debts on-timeGet mistakes correctedCredit RepairNo History? Get started by opening an account.
Pay History: Debt Re-Payment History
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2011 Credit Learning Systems of America
30%
10% 35%
10%
15%
Pay History
Amount Owed
Credit Age
Credit Type
New Credit
Basic Factors That Affect Your Credit ScoreBasic Factors That Affect Your Credit Score
Divide balance by Credit limit = ratioHigher than 25% is bad bad bad!Missed payments cause credit limits to dropPaying off balances cause scores to drop
Amount Owed: Balance-to-Credit-Limit Ratio
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2011 Credit Learning Systems of America
Credit Limit: $1,000.00
Balance: $500.00
Basic Factors That Affect Your Credit ScoreBasic Factors That Affect Your Credit Score
Amount Owed: Balance-to-Credit-Limit Ratio
$500.00 ------------ = 50% Ratio
$1,000.00 (too high!)
Ideal: 5% to 25% Balance-to-Credit-Limit-Ratio
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2011 Credit Learning Systems of America
30%
10% 35%
10%
15%
Pay History
Amount Owed
Credit Age
Credit Type
New Credit
Basic Factors That Affect Your Credit ScoreBasic Factors That Affect Your Credit Score
Divide balance by Credit limit = ratioHigher than 25% is bad bad bad!Missed payments cause credit limits to dropPaying off balances cause scores to drop
Amount Owed: Balance-to-Credit-Limit Ratio
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2011 Credit Learning Systems of America
30%
10% 35%
10%
15%
Pay History
Amount Owed
Credit Age
Credit Type
New Credit
Basic Factors That Affect Your Credit ScoreBasic Factors That Affect Your Credit Score
The older the better on open accountsOld accounts with no balance are bestGo beg Mom n Dad to add you to their accountsClowns ruin everything
Credit Age: Age of Each Account
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2011 Credit Learning Systems of America
30%
10% 35%
10%
15%
Pay History
Amount Owed
Credit Age
Credit Type
New Credit
Basic Factors That Affect Your Credit ScoreBasic Factors That Affect Your Credit Score
Variety is bestNo need to obtain all typesAvoid high risk lendersBookies can hurt you
Credit Types: Installment, Revolving, Optional, Mortgage, etc.
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2011 Credit Learning Systems of America
30%
10% 35%
10%
15%
Pay History
Amount Owed
Credit Age
Credit Type
New Credit
Basic Factors That Affect Your Credit ScoreBasic Factors That Affect Your Credit Score
New accounts are good when low balanceNew collections are bad all the timeHigh balances are badExcessive inquiries make you look desperate (or ugly)
New Credit: It Shows Continued Participation
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2011 Credit Learning Systems of America
Pay down balances, increase limits Transfer debt to other accounts Pay monthly payments on-time Build new credit Build old credit, or aged credit Use a variety of types of credit Repair mistakes, or hire a pro Paying off all balances will cause
scores to plummet
Basic Factors That Affect Your Credit ScoreBasic Factors That Affect Your Credit Score
Thanks for Watching & Good Luck!Credit Scores of 740 to 800 are Possible!
Tips Improve Your Credit Score