Scores are calculated from five factors:
• Payment history: 35% • Amounts owed: 30% • Length of credit history: 15%
• New credit: 10% • Credit mix: 10%
If you’ve experienced a foreclosure, bankruptcy, or other financial setbacks, the way to reestablish your credit history and raise your credit score is to use open credit accounts, manage them responsibly, and make timely payments. There is no substitute for patience and discipline, but if your credit report is in poor condition, there might be a few ways you can attempt to speed its recovery. Start by accessing your free credit report and score. You can obtain a free credit report once a year on the government website www.annualcreditreport.com. It’s also good to pull an annual report from each of the three national credit bureaus. You can search for them by name online or call them:
• Equifax: (866) 349-5191 • TransUnion: (800) 916-8800 • Experian: (800) 509-8495
Look for any accounts that show a negative status. Note any late payments or credit inquiries. Check to make sure your personal information, such as name and address, phone number, and employer, is all listed correctly. Your payment history is the biggest contributor to your score, so be careful to make payments in a timely manner. Your credit utilization ratio refers to the amount of credit card 155
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