There are three major companies in the United States that participate in reporting credit scores and histories of each with a different method. Therefore, your credit score is a little different in each of the companies. Here are some of the factors you can consider if you want to calculate your credit score yourself.
The first thing is that you have a credit score of zero if you have never owned a credit card or had any type of bill in your name or if you haven't borrowed money of any kind. It is difficult to get a loan if you have no credit but this is not considered bad credit. However, some companies will give the opportunity to someone who has no credit. It's much better to build your credit slowly as you go by having cards in your name and a comfortable and stable life within your means of income.
What is Credit All About?
Your credit history is very important and represents about 35% of your total credit score. If you have debts that have defaulted or invoices are not paid, it will hurt your credit score from 7 to 10 years before it deletes all. You need to know that if you make bad decisions with credit will hurt your credit in the future. Even if you are paying the debt now, it may still be displayed on your credit report and the accounts that were paid late. It's a good idea to start building credit as soon as you can even if you do not need to borrow money. You will need a good credit score to buy a house. While you have a bank account, your credit score will improve as time passes. You will have a better score for the already employed or maintain the same residence. This shows that have a stable life.
30% of your credit score depends on what you currently owe to creditors. Even if you are late paying your bills, if you have many loans out at one time, it may be possible that he refuses to have another. Therefore, it is important just to get the loans you really need and pay on time or earlier if possible. If you pay your loans on time, you not only see your credit score rise, you also save money on interest payments. This will show favorable credit history. You also want to try to keep your money in one place if possible. 10% of your credit score will be based on new accounts. They will look at different types of loans that have applied and how many have opened now. Not recommended for opening and closing accounts too fast.
Make sure you just use common sense and you'll be fine. Knowing what your credit score is and how it is calculated will help you find errors in it. You should review your credit report annually and is entitled to see a free copy.