Is your credit information weighted?
It is very difficult to get a straight answer from
anyone as to what, if any, specific personal or credit information might
carry more weight in the credit granting decision. However, logic
dictates that certain items would weigh more heavily than others.
But scores do not change month to month that much. In a
given 3 month time period, only 1 in 4 people has a 20-point change in
their score."
Scores consider 5 main categories for scoring consideration and are
weighted according to importance: Payment History -35%; Length Of
History -15%; Amounts Owed -30%; New Credit -10%; Types of Credit -10%.
Though a credit score takes in all the categories for
its score, it is possible that different consumer groups could be rated
slightly differently.
For example, a new consumer to the credit world might be
weighted differently than an established long term credit consumer.
With that in mind, here is a big tip to increase your scoring potential
within each category
Payment History - is the most heavily weighted section
of your credit score and constitutes 35%.
Pay your bills on time. The longer your history of on time
payment, the better your score. If paying off a collection account, or
closing an account on which you previously missed a payment, be aware
that any negative comment in association with such delinquencies will
remain on your credit report for 7.5 years.
Although this reflects your past credit pattern, the longer the time
since the discrepancy the less the impact on current credit score.
Additionally your credit score will be impacted more
dramatically depending on how late the payment was. Was it 30 days, 60
days, 90 days?
Conclusion
It's likely to take some time to improve your score significantly.
However, to improve your credit score under most models, as mentioned
concentrate on paying your bills on time, paying down outstanding
balances, and not taking on new debt.
When you think you have it all figured out consider the following
partial list of all possible FICO reason codes for credit turn downs
Too few bank revolving credit accounts.
Too many bank or national revolving accounts.
Too many accounts with balances.
Too many bank or national revolving accounts with balances.
No recent revolving balances.
Number of revolving accounts. [???]
Number of bank revolving or revolving accounts. [???]
Number of established accounts.[???]
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