What are the most important factors that go into a credit rating?
Answers:
Income
Income/debt ratio
timely payments
Bottom line about credit rating... think what the term means! Think about it from the Bank's perspective:
Suppose your friend wants a loan of $10,000. He has an income of $2000/month and has expenses of $1200/month (rent, car, food) and assume he already owes $500 /month money to another friend. Would you really lend him money? He may be trustworthy, but still. Now.. if his income went up to $3000/month or his debt was $200/month, that makes a big difference. You may also be more apt to lend him money if he owned a Rolls Royce, as now it means, he has a net worth!
Past payments are important, but the most important is income and debt.
Paying your bills on time
race. you know which one not to put. cuz automatically u will have bad credit.
groverraj has the best answer; imo, the two factors that go into your credit rating are: payment history & debt to income ratio. Payment history is 35% and Debt to Income Ratio is 65%
I have an Equifax account, and they detail important factors that go into coming up with your credit score that include the # of open/closed credit cards you have, along with have any gone past due, or to collection agencies.
By far its your payment history. Always paying your bills on time and never being late .. even once. And certainly dont let bills go into collection. If you do that you can almost always obtain at least a decent credit score.
The next most imprtant factor is your revolving credit line and your debt ratio. Having alot of credit available to you is a good thing in the creditors eyes, and keeping the balance of the cards at 50% or less is going to help also.
Federal district bankruptcy records and state and county court records of tax liens and monetary judgments. This information comes from public records.
Specific information about each account, such as the date opened, credit limit or loan amount, balance, monthly payment and payment pattern during the past several years. This information comes from companies that do business with you.
The names of those who have obtained a copy of your credit report. This information comes from the credit reporting agency.
Your name, current and previous addresses, phone number, Social Security number, date of birth and current and previous employers. Your spouse's name may appear on your version of the credit report, but it will not appear on the version that is provided to others. This information comes in part from your credit applications, so its accuracy depends on your filling out the forms clearly, completely and consistently each time you apply for credit.
Statements of dispute, which allow both consumers and creditors to report the factual history of an account. Statements of dispute are added after a consumer officially disputes the status of an account, the account has been reinvestigated, and the consumer and creditor cannot agree about the account status. Both the consumer's and creditor's statements of the account status will appear on the credit report.
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