Credit score from credit reports, credit report mainly includes the following several parts:1) personal information, including name, birthday, SSN, driver's license number, employer, address and other information;2) credit information, including your recent 7 years all credit accounts information, such as mortgages, car loans, credit CARDS and other lines, whether monthly payments on time, etc3) public information, including whether you bankruptcy, lawsuits, tax related information4) credit inquiry, including the last two years of hard pull, and soft pull.
What is a hard pull?What is it soft pull?
Hard pull refers to a bank or lending to borrowers in order to assess whether to you when your credit report to credit institutions.
Soft pull refers to the rest of the has nothing to do with lending credit report query.Such as query their own credit reports, credit card company has advertised in order to find potential clients, and so on.
What is a credit score
Letter with the score is to use mathematical model based on personal credit report the size of a bank's risk a numeric value, in general the smaller the more risky.Credit score there are many kinds of mathematical model, the most widely used in the bank is FICO score (300 ~ 850), which is owned by FICO, a calculation model of its details have not disclosed, but the composition of its credit scores have been summed up, is the image below:
Besides FICO, there are other companies to provide all kinds of credit scores, such as creditkrama score, because is not widely used, people called FAKO scores (false).Actually FAKO scores still has certain reference value, and some and FICO scores.
The lion's share of the credit score is payment records and credit line utilization, anyhow is to payment on time, and reduce the utilization rate, especially in only one or two new card.
Tips: if he had just taken the first one, and the amount is low, how to reduce the usage?In fact, as long as the monthly statement closing balance before the date is also a most, the final monthly statement balance is low, credit score increase quickly.
There are three parts: credit history nature is as long as possible, the first card so everyone will open with no annual fee credit card, and keep for a long time.As for the annual fee credit card, or want to open, according to the demand is not the sooner the better.Credit type so several new basic is a credit card, after work to settle down, have a car loan mortgage, the score of this part of the natural will go up.The last is the New Credit accounts, it is hard pull, the number of this part is just 10%.Have little impact on credit score actually, and will extend over time, more and more influence on scores of small, in fact barely affected the 91 days after, after two years will disappear completely.
What is a credit bureau
A credit bureau is an independent third party company, in the United States, there are three major credit bureau, Experian, among and TransUnion.Their role is to the bank personal credit record, collection and applying for borrowing and lending is available from the bank credit report, does not provide a credit score.The three companies are nonprofit organizations, whether Banks to report to their customer's credit history, or the bank access to their new customer credit history, all want to pay fees to the three.When reporting the customer's credit history as a result, some Banks in (situation, also apply for a new account), will not all three, or the time is fast or slow.Like my Experian credit report to update the most timely, TransUnion slowest.My Experian hard pull already 10, TransUnion only 4, 5.Therefore, from the three credit report to credit score is not the same.
How to query credit score:
The answer offers many free credit report query website, I also often use, but these scores are FAKO scores.
There is good news recently Discover company, as long as hold Discover It a credit card, a month will get free FICO scores, source is TransUnion credit bureau.So Discover It has again become the necessary credit card per person.It is said that Barclay card also provides FICO scores, I won't his card, so don't know much about it.
Put a small advertising (if someone want to apply for, can leave your email, I sent you a referral, the application is successful, there are 50 reward. But now you don't have to, Discover in the promotion period, now apply for a $150 reward)
To apply for a new credit card how to affect the credit score
To apply for a credit card, in simple terms, can increase a hard pull, 10% of the credit score will be affected by a little bit.
But the new credit CARDS will lower your average credit history, the other 15% of the credit score also affected by the bigger of the two.
But, however, a new credit card will greatly reduce the amount of practical rate, this will greatly improve the other 35% score.
Thus, for beginners (card number < 5, credit history > 6 months), bold to apply for a card like yourself, please bring their own execution.
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