Credit Rating Nuances You Should Master
Credit rating nuances are plentiful. The nuances relate to the data that impacts a credit rating, which fluctuates depending on the scoring version used. Credit ratings are usually influenced by elements from your credit score.
These elements are the usual suspects when it comes to credit rating nuances. They include:
(1) Payment background for loans and credit cards, including the number and severity of late payments.
(2) Credit use rate. This can include the amount you owe on student loans, auto loans or even personal loans. The payments are made in installments.
(3) Age, and the number of accounts. Lenders will look at the age of your oldest account as well as your newest account. They’ll also look at how recently you used any of them.
(4) Total debt. This includes the different types of debt you may have outstanding. Revolving credit card accounts are among the debts that shouldn’t be forgotten.
(5) Public documents like a bankruptcy tax lien or judgment. These documents can linger on your record for seven years.
(6) Just how many new credit accounts you have recently opened. Lenders will take notice if you’ve gone out on a spending spree via credit cards. A spate of opening new accounts can be viewed negatively.
(7) Quantity of inquiries to your credit report. Observers say not to fret these inquiries. While they can remain on your credit report for up to two years, they can be necessary evils.
Read on to find out about credit rating nuances as they relate specifically to FICO and Vantage scores.
FICO score Factors:
Most influential: Payment background on credit and credit cards
Highly influential: Complete debt and sums owed
Moderately influential: Length of credit rating
Less influential: New credit and credit combination (the Kinds of accounts you’ve got )
Credit Rating Nuances and VantageScore Factors:
Most influential: Payment background
Highly influential: Age and kind of credit, percentage of credit limitation utilized
Moderately influential: Complete balances and debt
Less influential: Recent charge score and queries, accessible credit
Credit rating nuances are plentiful, but they are fairly simple to follow and understand. Visit debtadvisorsus.com for more information.