How To Analyze Your Credit Score
One of the things you want to do is learn how to analyze your credit score. As I said in another video, it may come in handy that you want to have a good credit score so that she can get some short term cash. So there's a number of things that they look at when analyzing your score. When I say they, I'm talking about TransUnion and Equifax. They are the two big credits credit analyzers or credit bureaus.
What they look at first and foremost, is they want to see how much debt you have. They want to see if you have kept your payments up. If there are any delinquent payments. They want to see how many trades you have on your credit. If you've only got one credit card that, and you've never had any other loans for the last five years that's not going to be very helpful to your credit score.
They like to see two or three credit trades in your credit score so that it shows that you are able to pay. And they're also want to see how long those have been on there. If somebody just opened a credit card the day before or a couple of weeks before, or even a month before, that's not very good. As opposed to if you've had a credit card for three years or, or even just one year.
The same goes for loans and any other kinds of instruments or any other kinds of trades like lines of credit, for example. The other thing they want to see is what is the loan to value of each of the trades. For example, if you have a credit card with a limit of $3,000, and you're constantly at a balance of $2,000 or $2,900, or maybe even right up to the $3,000 limit, that doesn't contribute well to your credit score. If you only had $100 or a $500 balance, it would make your credit score look much better. Those are the main kinds of things that you want to look at when trying to figure out your credit score.
The other thing you want to see is if there's anything on there that is erroneous, meaning it's an error. You want to contact the financial institution or whatever institution put that charge or put that claim on your credit score, and go back to them and negotiate with them to have it removed. Or not negotiate but direct them to have it removed if it's in fact invalid.
So that's how you would analyze your credit score. I would recommend going and meeting with someone who's an expert at this, whether it's a credit advisor ... I used to say, go to a mortgage broker and sit down with them.
But a lot of mortgage brokers won't analyze your credit report because they're not financial advisors. So they just don't want that risk of telling you what to do from a credit perspective. What they tell you to do is things as simple as go out and get more credit lines and come back and then that would help improve your credit score. But they're not going to say it, as a matter of fact, they can only give you some direction.
So that's how you analyze your credit score and what you need to do to help improve it.