Credit Rating. What goes into the analysis of your credit scores? by Brianna Daguio

image #1

briannadaguio — 2021-03-30 02:39:54 UTC

This picture shows how credit score ratings are generally calculated. As you can see, the majority of it is calculated from your payment history. That meaning how often you paid off credit and whether you were on time making payments.

image #2

briannadaguio — 2021-03-30 02:41:48 UTC

This image signifies what your credit score rating means. The higher your credit score rating is, the better for you. Your credit score is based off payment history, credit history, credit utilization and type of credit you already have.

Credit ratings!

briannadaguio — 2021-03-30 02:45:08 UTC

Hello everyone and welcome to my padlet wall! Throughout my page, you will be learning about credit ratings. By reading this, you will hopefully be able to define credit score, what goes in to analysing your credit score, and how to obtain and maintain an excellent credit score rating. I hope you enjoy reading and learn something new about credit score ratings and the analysis of it!

Question #1

briannadaguio — 2021-03-30 02:50:21 UTC

What surprised me the most about this topic is the different factors that make up your credit score ratings. Each factor carries a different weight that will determine what your rating will be. For example, one of the greatest factors affecting credit score would be payment history which accounts for roughly 1/3 of the calculations.

Question #2

briannadaguio — 2021-03-30 02:51:51 UTC

This topic relates to me because I have a line of credit, which is my credit card. I have learned to be responsible in paying off my credit card balances by the time it is due or be able to make minimum payments.

Question #3

briannadaguio — 2021-03-30 02:53:47 UTC

If I were to pass on this information to someone I know, I think the most important thing to share is to check and review your credit report frequently so you can keep track as to what is affecting your credit score and how it can be approved. Another thing I would also share is that it is never too early to begin looking at how you can open a line of credit, and how you can obtain and maintain a great credit score rating.

Video #1

briannadaguio — 2021-03-30 03:03:12 UTC

It is important to start building your credit as soon and as early as possible. A credit score rating report shows how efficiently and how well you can meet your financial commitments. Some factors a credit report will list are the size of the loans you take out, debt payments and other payments, and a list of any late payments. A credit score rating is based on the payment habits and frequency of payments, the final amount of the debts you have accrued, and the type of credit lines you have open.

One thing I learned from this video that stands out is that the amount of times you have applied for a credit line shows on your report and can reflect poorly on you and deny you a line of credit

Video #2

briannadaguio — 2021-03-30 03:09:59 UTC

This video goes into more depth on the factors of credit score ratings. The payment history consists of whether or not you are late or on time with your credit payments. Another thing looked at for your payment history is the number of debt collections you have acquired in the past. The video also describes the length of you credit histories, if you are applying for any new credits, and any outstanding amounts you owe on your credit lines.

One thing that stood out to me from watching this video is that the best time to check your credit score is when you are considering making a big purchase, such as a house or car. While your credit ratings do not need to be checked every month per se, it is good to check frequently enough to make sure you are maintaining a good rating.

Video #3

briannadaguio — 2021-03-30 03:17:33 UTC

This video explains the different credit companies you may be under and how it affects you. This video gives names of credit bureaus such as Fico and Vantage and how each of these analyze and consider a person to have good or bad credit. For the most part, most companies show that any credit score rating of 725-759 is seen as a very good score and a rating of over 760 is seen as excellent.

What was unique in this video that stood out to me from the other videos is the weight that your payment history has that affects your credit score ratings. It is vital for anyone with a lien of credit to make sure that there any payments to be made are made on time so there is no outstanding balance or interest accrued.

Video #4

briannadaguio — 2021-03-30 03:23:46 UTC

This video is basically restating what has been said in most videos. In summary, this video says the good way of thinking is “numerical measure of how good of an idea it is to lend your money.” Again, each factor of credit analysis holds different weights, but there are specific factors that are hidden from the public. Some credit bureaus look at a ratio called debt-to-income ratio, which shows how much debt you pay off each month vs. the amount of money you are earning.

I learned that it is good to keep your ratio under 43%. Unlike your credit score, a lower percentage is better according to this ratio.

Website #1

briannadaguio — 2021-03-30 03:29:22 UTC

Credit files are collections of the information held on all of your credit accounts that are sent to credit bureaus.

Information included within credit files are balances, limits, payment history, etc. Personal information such as your name, address, age, social insurance number, occupation, martial status, and more are also included for identification.

-In Canada, credit scores are ranked on a point system ranging from 300 to 900. According to many credit bureaus, a score of 650 is entitled for many standard loans towards a person. The lower your score gets, the limited number of opportunities provided by your lender, the same applies to the opposite end of the spectrum.

The negative effects of a lower credit score include success within applying for a loan, employment, purchasing or renting a vehicle or house.

Website #2

briannadaguio — 2021-03-30 03:32:00 UTC

This website explains defines what your credit report is. A credit report is a summary of your financial activity and obligations through your lines of credit. A credit score is a number that is based on the information (5 main factors) on your credit report. This website gives tips on how to improve your credit score.

One thing that stood out to me in this website is that there is essentially no “quick fix” for a credit score rating. Your credit score rating is a build up over a period of time that will have a long=lasting impression on your credit report.

Website #3

briannadaguio — 2021-03-30 03:36:55 UTC

In all honesty, most websites, videos, and blogs about credit ratings and what goes into the analysis of credit score ratings reiterate the same thing. This website says that a credit score rating is a three-digit number that is defined by an algorithm of information from a credit report.

The one thing that stood out to me in this website article is that the factor of new credit and types of credits used are the least weighted factors in analysing your credit history. Those two combined only make up for about 20% of the analysis. The types of credit accounts used in past and present are looked at, such any installments.

Website #4

briannadaguio — 2021-03-30 03:42:02 UTC

It is important to note that credit analysts search for the potential dangers of lending money to a bank's client. This piece of information is applied to one's credit score, which is used to find their ability to pay back the loan. Credit analysts look for five factors in a client, these include one's character, capacity, capital, collateral, and conditions.

 The vital factor many analysts review in one's statement is their character. Credit analysts base your trustworthiness partly on experience levels, background, and various other sources that can be used to determine this factor. After looking at your character, the decisions are made.