Cracking the credit scoring code

[saraphen]

If you ever want to borrow money to make a large purchase for something like a car or home, the lender will look at your credit score. It used to be that nobody would tell you what your score is, since the formula was somehow cloaked in secrecy. Nowadays you can find out what your credit score is...don't ask me how, I don't even know my own since I haven't been in the market for several years.

Anyway, Michelle Singletary on Blackamerica Web tries to break it all down:

According to Watt, here is what's factored into your credit score:
-- Your credit utilization for each active revolving account, such as credit cards and some home equity lines of credit.
-- Credit utilization across for all active revolving accounts.
-- Credit utilization for each active installment account you have, such as a mortgage, auto or student loan.
-- Credit utilization across all active installment accounts.

“We have found that both factors -- individual credit utilization and aggregate credit utilization -- have value in predicting future credit risk,'' Watts said.

It makes more sense if you read the whole article:

http://www.blackamericaweb.com/site....ance/sing52805

[Cheese Biscuit]

Thanks Queen Saraphen.

[charliekilothree]

Originally Posted by saraphen

If you ever want to borrow money to make a large purchase for something like a car or home, the lender will look at your credit score. It used to be that nobody would tell you what your score is, since the formula was somehow cloaked in secrecy. Nowadays you can find out what your credit score is...don't ask me how, I don't even know my own since I haven't been in the market for several years.

Anyway, Michelle Singletary on Blackamerica Web tries to break it all down:

According to Watt, here is what's factored into your credit score:
-- Your credit utilization for each active revolving account, such as credit cards and some home equity lines of credit.
-- Credit utilization across for all active revolving accounts.
-- Credit utilization for each active installment account you have, such as a mortgage, auto or student loan.
-- Credit utilization across all active installment accounts.

“We have found that both factors -- individual credit utilization and aggregate credit utilization -- have value in predicting future credit risk,'' Watts said.

It makes more sense if you read the whole article:

http://www.blackamericaweb.com/site....ance/sing52805

When I bought my last new car in 02, the finance man at the dealership said that I had a high credit score but he did not give the exact number. I really did not give it much thought because I got a lower finance rate from Nissan than my credit union offered. The credit reporting angencies always try to sell your score whenever you get a credit report. Greedy suckers.

[saraphen]

The last time I got my credit report, it didn't have my score on it. I know the magic numer is 620 or higher to get a good rate on a mortgage. But lately all the old rules are flying out the window. Some places you can get a mortgage without a credit check.

[Chelbe]

I need to find out what my credit score is, but I'm almost afraid.

[charliekilothree]

Originally Posted by Chelbe

I need to find out what my credit score is, but I'm almost afraid.

Don't be scurred Chelbe.:)

I found out about all the included info when I started looking into my credit. Since then I have two companies monitoring my credit report and it is improving.

[SistahSpeak]

Originally Posted by cocoa33

I found out about all the included info when I started looking into my credit. Since then I have two companies monitoring my credit report and it is improving.

Did you have to pay an arm and a leg to these companies? Please tell me if they are working for you... someone told me about one about a month ago... $499 for them to monitor my credit, for I think the said a year. And the more people I signed up to go on board with me, the cheaper OUR rates could get. But it wasn't substantial. I'm curious, tell me more.