What is a credit Bureau?

Credit bureaus track personal, financial, and credit information on individuals. This includes personal information taken from public records, personal identification, and debt information. There are currently three major bureaus. They are: EQUIFAX, EXPERIAN, and TRANSUNION.

What makes up my credit score?

Payment history (35%). The largest factor determined on your credit report and FICO score. FICO score is your basic payment history.

Outstanding Debt (30%). Are your cards maxed out? High balances or more precisely, balances that are close to your credit limit can negatively affect your score. Keep your balances below 50%. (They like to see 20%)

Length of Credit history (15%). How long have your accounts been open? The longer, the better.

New Credit (10%). Every time you apply for credit of any kind, you
create an inquiry on your credit report. Lots of inquiries in a short period of time can negatively affect your score.

Types of credit in use (10%). Loan variation such as auto loan, home loan, credit cards, etc.

Do credit cards affect your credit score?

Yes! Credit cards are a major factor of the overall credit score. In fact, they account for approximately 30% of your credit score.

How long does information remain on my report?

Credit bureaus report credit information generally for a period of seven years. Chapter 7, Chapter 11, and Chapter 13 bankruptcies are each reported for 10 years.