Archive for the ‘credit score’ Category

Your Free Credit Scores May Not Be Free

You have heard the ole saying that “there is no such thing as a free lunch”, well the same could be said for credit scores.  I am sure you have heard those annoying commercials 3 free scores and more.

You may get a number from these services, but usually you will first have to fill in a form and give them your personal information.  That means you’ll start receiving calls or emails from these companies trying to sell you on something else, like some type of monitoring service, or they automatically enroll you in their service where you get charged a monthly premium.  The free score may not be free after all, watch for the fine print to see what they are really offering.

Deciphering The Credit Score Formula – What Makes Up Your Credit Score?

1) Types of Credit in Use: About 10% of your score 

Credit score calculations consist of complex formulas that take into account both the types of account, their mix and the total number of credit accounts in your name.

Credit account types include: credit cards, retail accounts, installment loans, finance company accounts and mortgage loans.

2)  Pattern of Credit Use: About 10% of your score

The number of new accounts you have and the type of  the account  is part of your score.

Also how long has it been since you opened a new account and the type of account it was.