September 28, 2009 – 1:21 am
Credit scores are calculated based on the following factors;
1. Payment history (longer the better) 35%
2. Time in bureau (longer the better) 15%
3. Types of credit (mix of revolving & installment) 10%
4. New credit (inquiries and new accounts) 10%
5. Debt to credit ratio (lower the better) 30%
To have the best credit score and profile people need to have 3 credit card accounts (revolving) with balances below 30% of their limits and 2 cars, homes, motorcycles, computers, boats, furniture or personal accounts (installment) all with good long payment histories.
September 27, 2009 – 1:16 am
A hard hit on a credit report is an inquiry by a prospective lender and it will show as a hard hit inquiry for about 2 years. The hard hits will be included on your credit report and will let another prospective lender know that you have been actively seeking lines of credit and/or loans.
A soft hit on a credit report is when the the individual is checking his or her credit report or a seller like a cell phone company checking the persons report. It is done to see whether you are credit worthy and are only looking for information.
The hard hit will cost you a couple of points . If you are applying to a lot of prospective lenders, it will cost you a lot of points and your application may be denied.
September 26, 2009 – 8:52 pm
Credit related news and updates