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  Calculate Credit Score
 
Final line to having  a good credit score irregardless of whether it is an Experian, TransUnion, Equifax, FICO or Vantage score is - the more "bad credit" items that  you have reported on your 3 credit bureau credit reports the lower your credit score will be on your FICO and or Vantage score. Simple right?.

The key to achieving a good credit score is to be capable of getting any and or all of the bad credit items removed from  each of the 3 credit bureau credit reports.

How Is A Good Credit Score Calculated?

Your credit score is simply a number representing your life as it relates to your past and existing debt. Each credit bureau, FICO and  Vantage has it's own proprietary algorithm that they guard with care but there is some general information  available as to how they all calculate their score for you.

So How the Scores Are Calculated

Your credit score is calculated using five key categories.

1) 35% of your Score is devoted to Payment History - missed payments, collections, bankruptcies etc. The older the information the less of an  impact on your overall score.

2) 30% of your Score is based on Utilization - the amount of credit you have in use as compared to your available credit. The recommendations  point to less than 10% of your available credit be utilized.

3) 15% of your Score is impacted by your Credit History - how long you've had accounts open and obviously takes some time to build.

4) 10% of your Score is based on Inquiries - if you apply for various forms of credit and then don't get that credit it will impact you negatively. Checking your own credit does not impact this number.

5) 10% of your Score is determined by Types of Credit - different forms of credit such as mortgages, auto loans, revolving credit and  installments.

Whats a Good Credit Score?

The simple non-scientific answer is 760 or above. That's the score that is going to get you the best interest rates  possible on a mortgage, auto loan or many other forms of credit. Clearly that doesn't mean that each lender will offer you the same rate if you have a 760 score. It will depend upon the amount of money a particular lender has available at the time that you  apply for your loan that will dictate what the loan rate they will offer you.

If your score is 760  or above then I recommend that you monitor your  credit scores and if it drops for some reason you will know immediately and you will be able to do what needs to be done to get it back to that  magical number. This is important because if you allow it to drop within 30-60 days you'll see many of  your loans and or credit card rates slide upward. That happens because the "fine print" on every loan or credit card agreement will usually  allow the lender to adjust your rate without notice if your credit score changes.

If your credit score is far below the 760 score then you may want to know how you can force all three of the credit bureaus to  give you a good score. There are ways to do that visit credit report to find out how.
 
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