How to Figure out your Credit Score

Find out how to find out your credit rating

How do you rate your creditworthiness? Creditworthiness matters in everything from your mortgages to your insurances. So, it's probably a good thing to know how it's going to be defined at all - then you can figure out how to make it better. Sophia Bera, a certificated finance calculator, will discuss the five key credit rating determinants in her forthcoming publication "What You Should Have Learnt About Money, But Never Did".

This is because the credit bureaux that generate your score are not exactly able to come up with that. This is the relationship between your available credit and the balance you have on your credit line. Basically, it is how much of your available balance you consume. Says she: "Having many credits available, but using only a small percent of them, is good for your score.

A small amount of available credit and recharging to the maximum - even if you withdraw the money each month - will not help your score. "Together with the outstanding accounts, the paying behaviour is the other big part of your creditworthiness. This is explained easily by Bern as if you were paying your credit cards on schedule and in full.

"The time your money is paid will have an effect on your score," says Mr Bere. "For example, making more than 60 or 90 day too late means more to your credit than making 30 day too late. However, if you make more than one purchase, your credit will be more important. And the good thing is that if your pay is less than 30 day too late, it' probably hasn't been registered with the credit bureau yet, so make a pay - now!

" Referring to the duration of the existence of your credit account, according to Mr Bere, this relates to the duration of your credit account. It says that a general general rule of the thumb is that the longer your credit record is, the better that is for your score. "Older credit historians can have bad grades if they have used credit in an irresponsible way, while younger ones who have not had very long credit but have used it prudently can have great grades," says Mr Bere.

Remember that this is your credit histories old rating, not your credit card. Closing one doesn't alter the ages of your story. Aleksandr Béra explained this fact with a wide range of credit, not only credit card but also other types of credit such as mortgage and auto-credit.

"Different kinds of loans in your name indicate that you are accountable and can handle your finances," she says. Bera quickly warns the reader, however, against leaking out and opening several credit facilities or new credit card facilities, which brings us to the last determinant..... Together with the credit spread, the new credit forms the other smaller part of your creditworthiness.

It is this fact that determines why you do not want to expire and want to advertise for a pile of new loans. Whenever you request a new credit or debit card such as a shop credit or debit line, this emitter will look at your credit reports. "According to Bernard, too many tough requests in a hurry will have a bad effect on your score.

"When you open many credit facilities at once, a ton of new loans may appear and affect your credit," she states.

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