Credit Scores Demystified
Anoynomous • January 16, 2020
If you've made a resolution this year to get your credit on track, getting started can feel a bit daunting. After all, it can sometimes seem as if credit agencies want to keep you in the dark about how scores are calculated. Not to worry - with some diligence on your part and a little insight into the world of credit score-keeping, you can get back on track in 2020.
Paint your credit score on your wall for extra motivation!
Credit scores follow an algorithm first developed by the data analytics company FICO years ago. For a while, credit scores weren't the primary force behind a credit decision but over time the impact of a credit score became more and more important. Most every loan program available today has a minimum credit score.
There are five characteristics of your credit history that make up your three-digit score: your payment history, account balances, the length of your credit history, the types of credit used and how often you've applied for new credit. Credit scores will improve much more quickly by paying attention to the two categories that have the greatest impact on a score: payment history and account balances.
Payment history accounts for 35 percent of the total score. When someone makes a payment more than 30 days past the due date, scores will fall. An occasional "late pay" won't do much damage to your score but continued payments made more than 30 days past due definitely will. Preventing late payments is a key to recovering your score.
Account balances compare outstanding loan balances with credit lines and make up 30 percent of your score. If a credit card has a $10,000 credit line and there is a $3,300 balance, scores will actually improve, as the ideal balance-to-limit is about one-third of the credit line. As the balance grows and approaches or exceeds the limit, scores will begin to fall.
The remaining three have relatively little impact. How long someone has used credit accounts for 15 percent of the score, but there's really nothing anyone can do to improve this area other than to wait. Types of credit and credit inquiries both make up 10 percent of the score. By concentrating on payment history and account balances, scores will improve significantly over the next few months.
Schedule a time to see this home today!
Stay in touch
3445 Grandview Crossing Ln Pfafftown NC 27040 is a wonderful main level living home in Grandview Crossing neighborhood of Pfafftown. Enjoy peaceful Pfafftown living
1085 Woodbury Road! Nestled on a partially wooded lot in Stokes County, 3-br, 3-ba offers the perfect blend of country tranquility and citywide convenience.
354 Merrimont Dr Winston Salem NC 27106 3 bedroom 2 bath home for sale in winston salem nc with Pro Realty Group. Move-in ready with expansive finished basement.
3Bedroom/3Bathroom with over a half acre of land
Welcome to this move-in ready 4-bedroom home in British Woods! The heart of this home has an updated kitchen, updated cabinets, sleek countertops, & farm style sink.
32 Crockett Ridge Rd Black Mountain NC House Home for Sale in the Settings of Black Mountain. Panoramic Views at over 3k feet elevation. Pro Realty Group
Welcome to 301 Bexley Dr located in the privacy of Breckenridge. Cozy up next to the fireplace in the living room with tons of natural light pouring in!
Looking for privacy, seclusion, peace, & quiet? This fantastic home offers 5.2+/- private acres amongst a secluded neighborhood. Beautiful and low maintenance landscaping, impressive garden, three car garage, & large patio. Don't miss the spacious covered back deck off the kitchen perfect for bird watching, wildlife, or taking in the serene wooded area. This homes layout is very flexible and spacious over 4,000 sq ft. +/-. Grand 18 ft ceilings in the formal living room, a generous master suite w/ private balcony and updated tiled shower. The finished basement offers a work from home space, full bath, bonus room/play room that transitions to the lower level garage & oversized, well kept workshop. Extra parking pad that's perfect for parking a large RV, trucks, or farming equipment. While very private, only 30 minutes from High Point, Greensboro, & Winston Salem. In addition to Pilot Mountain State Park, Hanging Rock State Park, & Belews Lake. Photos coming soon!
2589 Leighswood Dr Winston Salem NC 27106 is a home for sale in the Cheslyn Neighborhood. With four bedrooms, two-and-a-half baths, pool, loft and an office!
1910 Darwick Rd home offers space for flexibility in room sizes and layout hardwood floors in the main primary suite is on the main level with private access to deck
