![]() Your payment history also includes details on bankruptcies, foreclosures, wage attachments and any accounts that have been reported to collection agencies. So, if you have 10 credit accounts, and you’ve had a late payment on 5 of those accounts, that ratio may impact credit scores. Your credit history will also detail how many of your credit accounts have been delinquent in relation to all of your accounts on file. Credit scoring models generally look at how late your payments were, how much was owed, and how recently and how often you missed a payment. Payment history will also show a lender or creditor details on late or missed payments, bankruptcies, and collection information. Your payment history may include credit cards, retail department store accounts, installment loans, auto loans, student loans, finance company accounts, home equity loans and mortgage loans. When a lender or creditor looks at your credit report, a key question they are trying to answer is, “If I extend this person credit, will they pay it back on time?” One of the things they will take into consideration is your payment history – how you’ve repaid your credit in the past. Here is a general breakdown of the factors credit scoring models consider, keeping in mind there are many different credit scoring models. Depending on the scoring model used, the weight each factor carries as far as impacting a credit score may vary. ![]() In general, here are the factors considered in credit scoring calculations. In addition, lenders may also use a blended credit score from the three major credit bureaus. For example, if you’re buying a car, an auto lender might use a credit score that places more emphasis on your payment history when it comes to auto loans. The types of credit scores used by lenders and creditors may vary based on their industry. In addition, the credit scoring models among the three major credit bureaus are different, as well as those used by other companies that provide credit scores, such as FICO or VantageScore. While many do, others may report to two, one or none at all. Credit scores will vary for several reasons, including the company providing the score, the data on which the score is based, and the method of calculating the score.Ĭredit scores provided by the three major credit bureaus - Equifax, Experian and TransUnion - may also vary because not all lenders and creditors report information to all three major credit bureaus. Many people are surprised to find out they don’t have just one credit score. available credit and the length of your credit history are factors frequently used to calculate credit scores Payment history, the number and type of credit accounts, your used vs. ![]() Credit scores may vary because of several reasons
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