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Credit Score

June 24, 2011 Leave a comment

Credit Score

I splurged and bought my credit score from TransUnion and Equifax today. They weren’t as high as I thought they would be, but I learned some interesting facts while reading through the pages of information that was presented by each company. Let me share some of these things that counted against me.

Amount of Debt – TransUnion

Not knowing how the calculations worked, I was shocked to see that my rating on this topic was only “Very Good” and not “Great”. After digging deeper, I found out that a few things were counting against me that I didn’t expect. The first item was my credit card bill, which I just received a bill for. The payment isn’t late, heck it isn’t due until next month! The second item was my furniture that I bought with 0% financing for 24 months. I guess both make sense because I haven’t paid them off, but I didn’t think they would be that big of a deal. I suspect that, before I try to get a loan, I should pay off all the debt even if it means paying off all my credit cards before a bill comes. The interesting thing is that Equifax doesn’t seem to count this against me!

Length of Credit History – TransUnion and Equifax

I feel old, but in credit history years it looks like I am still young. My appromately 10 years of credit history is only enough to get me a “Good” rating. This something that I can’t do anything about. The years will pass as they pass. I’m not sure I would want to make them pass by quicker just for a higher credit score anyways!

Bottom Line

After viewing these reports, it seems to me that there isn’t really any huge secret to a high credit score.

  • Don’t miss any payments
  • Try to keep your debt to credit ratio low by either lowering your debt (spend less)¬†or raising your credit (apply for more credit)
  • Don’t die
  • Establish credit early and don’t apply for a bunch of new cards at once
Categories: Credit