How exactly is your credit score calculated? In layman’s terms please..?

Tips and Deals Forums Improving Your Credit Score How exactly is your credit score calculated? In layman’s terms please..?

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    • #206619
      Anonymous
      Inactive

      I have horrible credit but is currently paying back all debts and going to get a secured credit card to build up good credit. Does making big($) purchases or small purchases on the secured credit card affect the credit score? Meaning if I make a $500 charge on the card and pay the amount due every month equals more points on my credit score say than a $20 purchase?

    • #271906
      Anonymous
      Inactive

      Credit score is calculate in the following way :

      * Payment history – Indicates whether you have made your credit card payments, loan payments and other payments on time
      * Amounts owed – Compares how much you owe to your credit limits with various lenders
      * Length of time in file – Indicates how long you have had credit accounts
      * New credit – Shows how often you are looking for new credit and how you handle accounts you have recently opened
      * Type of credit – Considers the type of loans you have – car loans, lines of credit, credit card balances

      *Note: Any Mortgage information that may appear in your credit report is not used to calculate your credit score.

      Now, as far as how to handle the secured card, the best way is to charge it almost upto it’s limit, then pay it off in 15 days from the day you charged it, do not wait for the bill, the reason and concept behind this is that you are showing the bank that you are once again willing to become ‘prompt’ and to build this promptness you must show that you are going to make timely payments to be pardoned for your sins of having bad credit, I mean that’s the way I look it, they punish you with high interest rates and collection agency calls if you fail to make timely payments…There is nothing else.

      So yeah do that for a few months, once the bank builds confidence in you again, they will return the money you put down for that secured card and make it a regular card. they may even give you a small credit limit increase.

      Hope this helps.

    • #434464
      Anonymous
      Inactive

      no. The only way to repair your credit is to challenge any false information and build good credit.

    • #434465
      Anonymous
      Inactive

      Sure! They put lots of money in the pockets of those who run them.

    • #434466
      Anonymous
      Inactive

      I would not get involved in them. they are “just” legal and most AG offices in all 50 states are looking into outlawing them.

      How it works is they have lists of people with very good credit and then you pay the company thousands of dollars, they turn around and pay these people on the lists to put your name on their credit card accounts with them….in 6 months or so, it looks like you have actually paid a bill instead of being a deadbeat. You have no access to these accounts BTW….then when you apply for credit down the road, it looks like you have better credit….this doesn’t help you much if you credit is so terrible a good card or two won’t help.

      i would stay away.

    • #434467
      Anonymous
      Inactive

      No they do not.It takes up to 10 years to repair your credit.Now that employers are looking into potentail applicants credit scores it makes it even worse. Did you know that everytime someone makes and inquiry into your credit score it dwindles?

    • #434468
      Anonymous
      Inactive

      NO. MOST are scams. You need to get copies of your CRs from the 3 major credit reporting companies. Make sure that you call each place that STILL has you marked as UNPAID or written off, if you paid it. Companies just love to report to these bureaus “write off”, “charge off”, when you legitimately filed bankruptcy! it looks worse..or does it? Pay the little ones first, then work on the bigger debts. Don’t pay anything over 30 days. After you have paid and caught up, order another report from the 3 companies.

    • #434469
      Anonymous
      Inactive

      will work for them but not for you.

    • #434470
      Anonymous
      Inactive

      Nope

    • #434471
      Anonymous
      Inactive

      Most of them are scams. There is legitimate counseling available, but if they claim to be able to work any magical fixes, stay away.

    • #434472
      Anonymous
      Inactive

      I would have to say that most who answered have not used a credit repair service. If you pick the right one, or one that a user can vouch for , you have a much better chance of success. There is a free evaluation form at http://www.totaldebtsolutionsllc.com They partner with 3-4 different credit repair companies who services run from $ 19.95 to $ 1995 depending on your needs and level of service you desire. Good luck.

    • #434473
      Anonymous
      Inactive

      I understand your concerns. Many people out there believe that credit repair is a scam. And, to be honest, there are a lot of scam artists out there posing as credit repair specialists. However, it should be noted that most of the myths about credit repair are perpetuated by the credit reporting agencies. They don’t want you challenging what they do because it costs them money. So they will tell you that you don’t need to do credit repair or that you can do it yourself. While that is true, it is also true that you can repair your car yourself when it breaks down. However, you take it to a mechanic because you know the mechanic understands engines better than you do.

      I KNOW its legitimate i went from a 502 credit score to a 767 in 6 months!!!!!!!!!!!!

      The company i used offered a money back guarantee.

      NWBA has been in business for over 13 years. In all that time they have had only one complaint against them with the BBB. Other companies in this field have as many as 300 in the last three years. In fact the other two of the top three credit restoration companies both have over 250 complaints against them in the last three years.

      The decision is ultimately yours. there credentials and reputation are unimpeachable. It comes down to, are you going to listen to people who only believe what they hear on TV or are you going to believe people who actually work in the field every day and know the truth?

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