Protect Your Credit Score
560 and below, that is the score from you which credit scores need to protected. The score of 560 or below on FICO means poor credit rating. With a poor credit rating many financial benefits and tools are not provided to the debtors. A regular check on the credit report needs to be made to prevent any errors due to which the scores reach such a level.
Factors which influence the credit scores
There are five factors on the basis of which the credit scores are calculated. These include the payment history of the debtors, which compromises about 35% of the credit score. The second is the amount of credit which the debtors are using, this estimate to about 30% of the credit score. Thirdly, the duration of the credit is there and this reflects about 15% on the credit reports. The number of times the debtors credit has been pulled reflects about 10% on the credit score. And finally the types of credit which the debtors have reflect another 10% on the credit report.
Protecting the credit score from these factors
The factors which influence the credit scores need to be kept in toll to prevent the credit scores from falling. The payment history reflects all the non payments of the debtors. Making regular payments ensure that the payment history does not reflect poorly on the credit report. The amount of credit used by the debtors should also be restricted and avoided wherever possible. The duration of extended credit means higher interest rates which show poorly on credit reports, due to the increases loan amount. Timely payments prevent the interest rates being added to the report. Pulling the credit should be avoided as it also influences the credit scores. Finally increasing the types of credits like loans, unpaid bills, credit card dues, etc. all add up to reducing the credit scores further.
Checking manual errors on credit reports
There have been instances where, in spite of payments being made and bills being cleared, the credit reports show no improvement. In such cases debtors should take the initiative to check their credit reports themselves, online or through mail. Most bureaus update their credit reports weekly, monthly or quarterly. Hence by informing the bureaus of these payments the credit reports can be immediately updated. Also any manual errors on the reports can be corrected before they reach the various lenders.
560 and below, that is the score from you which credit scores need to protected. The score of 560 or below on FICO means poor credit rating. With a poor credit rating many financial benefits and tools are not provided to the debtors. A regular check on the credit report needs to be made to prevent any errors due to which the scores reach such a level.
Factors which influence the credit scores
There are five factors on the basis of which the credit scores are calculated. These include the payment history of the debtors, which compromises about 35% of the credit score. The second is the amount of credit which the debtors are using, this estimate to about 30% of the credit score. Thirdly, the duration of the credit is there and this reflects about 15% on the credit reports. The number of times the debtors credit has been pulled reflects about 10% on the credit score. And finally the types of credit which the debtors have reflect another 10% on the credit report.
Protecting the credit score from these factors
The factors which influence the credit scores need to be kept in toll to prevent the credit scores from falling. The payment history reflects all the non payments of the debtors. Making regular payments ensure that the payment history does not reflect poorly on the credit report. The amount of credit used by the debtors should also be restricted and avoided wherever possible. The duration of extended credit means higher interest rates which show poorly on credit reports, due to the increases loan amount. Timely payments prevent the interest rates being added to the report. Pulling the credit should be avoided as it also influences the credit scores. Finally increasing the types of credits like loans, unpaid bills, credit card dues, etc. all add up to reducing the credit scores further.
Checking manual errors on credit reports
There have been instances where, in spite of payments being made and bills being cleared, the credit reports show no improvement. In such cases debtors should take the initiative to check their credit reports themselves, online or through mail. Most bureaus update their credit reports weekly, monthly or quarterly. Hence by informing the bureaus of these payments the credit reports can be immediately updated. Also any manual errors on the reports can be corrected before they reach the various lenders.