Credit Score

How Good Credit Score you need for Online Credit Cards

What is credit score?

Credit score algorithm is developed by Fair Isaac and this score model is used by all the credit reporting organizations to rank your credit ranking against credit score. First, let see what are important factors, which are key to your credit score? When credit card companies are evaluating your online credit card application they look for following information in your credit file.

• Payment History: How you have been paying your bills in past.<./li>
  
  
• Amount Owed: How much you already owe to lenders.



• Length of credit history: The more you have positive credit history the more it adds weight to your credit score.



• Type of credit: If you own home or big credit such as car or personal loan which you are paying timely back to lender also shows your credit worthiness. Taking loan for home, car and college may be necessity but other then these three piling loan is bad way of building credit history



• New Credit: This shows lender’s confidence in you and are offering credit to you against your good credit history. But opening too many credit cards also goes against you especially if they are being used for piling debt. Keeping unused credit is good for credit score.



• Blemish Record: Any negative remarks on your credit report will bring your credit score down.

These days you can instantly receive your free credit score and free credit report online. Yes, that is true. The collaborative efforts from three credit agencies (Transunion, Experian and Equifax) led to forming one single point place for consumers to check free credit reports once a year. The name of website is Annual Credit Report




There are many websites charging $9.99 to $19.99 selling various Credit score & Credit reports one time report or on a monthly basis to monitor your credit account.



Recently Credit Karma has started giving free credit score to consumers and they don't even as for credit card information. The registration on site is required to view free credit score.

How Credit Score gets Calculated

Your FICO Score considers both positive and negative information in your credit report. Late payments will lower your FICO Score, but establishing or re-establishing a good track record of making payments on time will raise your score.

How a FICO Score breaks down

These percentages are based on the importance of the five categories for the general population. For particular groups—for example, people who have not been using credit long—the relative importance of these categories may be different


Source: Read more at MyFico