Your score is made up a few different factors, credit bureaus don't tell anyone exactly what these factors are because they do not want people to cheat the scoring system.
With that said, each credit report has certain “codes" on the bottom which give you a general idea of the factors that credit bureaus take into account when calculating your rating.
I have also worked in the mortgage industry where I have been exposed to many credit reports, all of which are unique and this exposure has given me a good insight to the factors that the 3 main bureaus use to formulate a score. In this article I will share with you my findings.
Time Since Most Recent Delinquency- This is one factor that will do immediate damage to your score, if you are more than 30 days late on a revolving or installment payment such as a car or credit card payment, this will surely do damage to your overall score. This also would include being more than 30 days late on a mortgage payment, I have found that is actually can reduce your score by as much as 100 points.
DTL Ratio Of Revolving Credit Limit- This simply means the total amount of revolving credit that you have used compared to your total limit. If this ratio is high, it will also bring down your rating. For example, you have two credit cards with a limit of $1000 each, a total of $2000. You have used $900 on each of these cards for a total of $1800 used. This means that you have only $200 in available credit. Your ratio of credit spent compared to total amount expressed as a percentage would be at 90%, which is considered high!
This scenario according to the credit bureaus will look like you are not using your credit wisely because you are near maxing out your limit and the bureaus will penalize your credit score for this, these are two factors that affect your overall rating.
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