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7 • How does the Credit Bureau
Monitor and rate my credit score?

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The lenders regularly report your payment history to credit bureaus that use a consumer profiling algorithm that defines a rating for how well you manage your finances responsibilities under five different headings.

Payment History (35%): They evaluate your account payment information based on the different types of accounts to look for adverse public records, delinquency, paid accounts, number of past due items and more.

Amounts Owed (30%): They evaluate the number of credit accounts with balances, how much you owe on your accounts, proportion of credit lines used, and especially how much of your credit limit you have used.

Length of Credit History (15%): They evaluate length of the time you have managed your accounts since they were opened, and by type of account, and the time since last activity on each account.

New Credit (10%): They evaluate the number of recently opened accounts, number of recent credit inquiries, the length of time since any credit inquiries, time since any recent account openings, etc.

Types of Credit Used (10%): They evaluate the number of different types of accounts and types of credit activity on accounts.

When you Understand Credit, You will have Great Credit!