Top 10 factors credit bureaus consider to calculate your credit score.

Here are ten factors credit agencies consider when calculating your credit score, listed in order of importance:



1. Major derogatory items on your report – Bankruptcy, collections, foreclosure, and slow payments will put a huge dent in your credit score.
2. Time at your present job – The longer you are at your job, the better.
3. Occupation – Professionals get 50 points, but a typical blue collar employee will only get 25
4. Time at present address – Living in your parents’ basement until you’re 35 isn’t necessarily a good thing, but it will help your credit.
5. Ratio of balances to available credit lines – The lower the better. Don’t be afraid to increase your credit limit to lower the ratio.
6. Homeownership – If you own a home, you get an additional 10 points over those who rent.
7. Number of recent inquiries – Don’t apply for 20 credit cards just to get a free t-shirt.
8. Age – Credit agencies consider those over 50 to be the best age.
9. Number of credit lines – If you have too much credit, it can actually hurt you.
10. Years of credit in the credit bureau database – Time is your friend. The longer you have good credit, the better.
I thought this was an interesting breakdown of what turns an individual into a number. If you want the full breakdown of credit scores, you can see it at myfico.com.

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Ron Meyer
(920) 213-0428
www.gsfron.com
rmeyer@gogsf.com