score sense credit
score sense credit

Many people who sign up for a free ScoreSense credit report and trial period do not have a complete understanding of their credit scores. That’s understandable, because understanding how a good credit score is calculated is complicated. However, for ScoreSense, credit scores are a piece of cake! Here’s some information to help you understand your report.

Credit scores are complicated and not every bureau or lender calculates them the same way. However, the credit scores scale is standard, and reporting agencies and creditors agree that a good credit score is generally 690 or above. So if you have a 650 credit score or a 630 credit score, you may need to work to bring it up a little bit before you apply for a loan. At ScoreSense, credit rebuilding is one of the pieces of information offered to members.

As reported by ScoreSense, credit scores are primarily based on five factors:

  • Payment History: Anything that indicates a tendency to pay late on any bill or loan of any kind will hurt your score. Furthermore, the more recent the late payment, delinquency, or bankruptcy, the more it will negatively impact your credit score. This factor accounts for 35 percent of your score on the credit scores scale.
  • Current Debt: Accounting for another 30 percent is your debt-credit line ratio. This means that if you max out your credit cards, your credit score will suffer.
  • Length of Credit History: Having accounts open for a long time shows you have a proven track record, and this factor is about 15 percent of your credit score.
  • New Credit: This counts as 10 percent of your credit score, and the more credit lines you have open, the higher risk you will seem. Don’t open too many lines of credit at once if you want a good credit score.
  • Types of Credit: It’s best to have a healthy mix of credit types, like credit cards, installment accounts, mortgages, and consumer finance accounts. As long as you are making timely payments and paying balances in full when possible, it’s good to have a variety of accounts.

When you sign up with ScoreSense, credit monitoring is only part of the benefit you’ll receive. ScoreSense is committed to giving members the information they need to protect their finances and families. For more information on credit score tips or to get your free credit score today, visit our website!

Posted by:ScoreSense

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