subject: What Type Of Credit Score You Need To Have? [print this page] What will a reader want to know reading the very title of the article? Obviously, he or she would want to know, what is a good credit score? In order, to satisfy their curiosity let me explain the term to them.
A credit score is a number that helps to evaluate a persons credit report and at the same time estimate his or her credit risk.
The most common among the credit score is FICO score model. Generally, a FICO score of a person is verified to lenders after the scrutiny of three major agencies-Experian, TransUnion and Equifax, to help lenders in order to know the risk they are dwelling in.
A persons credit score is the measuring track for different types of credit rating and interest types. Person who have acquired high rate of credit score, credit repair company can avail them with 30 year fixed rate mortgage whereas the one who are having low credit score, can acquire the same time of mortgage rate, but their monthly payment will be slightly higher.
However, as long as one is having credit score then is sure that their slate is no more clear, it will; do take time to repair completely. Now people are offered with number of credit repair USA based companies, who are coming up with professional ideas to fight back with credit debts.
A person who is quite younger4 will have a lower credit score than an aged person. Young people are sure to have problems because their depth and length of credit history is not so big like the older ones.
Factors That Affect Credit Scores
Five factors are included and weighted to calculate a person's FICO credit score:
35%: payment history
30%: amounts owed
15%: length of credit history
10%: new credit and recently opened accounts
10%: types of credit in use
For FICO score sage is not taken into consideration, credit repair company do know all these factors and they do move with legal proceedings to deal with debts in a better way. FICO score just weighs the length of the credit history. However, younger people are set a disadvantage, but it is possible for people who are, having short credit histories can get favorable scores depending on the rest of their credit report.
The person who has opened up new accounts will automatically lower the average account age, which in turn is sure to affect the credit score. FICO prefers to see established accounts. Young people with several years worth of credit accounts and no new accounts that would lower the average account age can score higher than young people with too many accounts, or those who have recently opened an account.
If we categorize credit score by age then we can check out how it affects various age groups, let us take a quick look at this chart:
AgeCredit Score
18-24638
25-34652
35-44659
45-54685
55+ 724
keeping in mind all the factors credit repair USA works according to the FICO score model and ask or advises their client to maintain their credit history like that. If they sought help from credit repair companies then they will be confident enough to fight it back.
