Your credit karma score is the statistical analysis of your credit history, representing your credit-worthiness. This are designed to determine the risk that you can become delinquent in your loan and credit obligations in the 2 years after scoring. It is a three-digit number generated by agencies using information from your reports.

So what is an excellent credit score and fico credit score what can be considered as bad ones? Scores of 760 and above are considered excellent. Scores of 700-759 are great while scores of 660-699 are good. 620-659 are scores that are average. Scores of 580-619 are poor scores and 579 and below are very poor scores.






If you have a score of 775, you will have high trust factor than those with a score of 550. That means the reporting agency believes that you are more likely to repay debt and make payments on or before time.

To calculate your FICO stores, each of your report should contain at least a single account that has been opened for a period of 6 months of more. The report should also contain a minimum of one account which has been updated in the last 6 months to make sure there are sufficient recent details on which to base a credit ratings.

Financial institutions, insurance companies and lending firms use ratings in deciding whether or not they should allow you to take a loan. Good and excellent ratings can make you eligible for better rates. Bad ratings can either mean being denied for certain loans or paying expensive interest rates.

how to improve credit score is your credit karma score calculated? Your score will include data from major categories. Your payment history is 35% of your score and that includes all account payment information including public records and delinquencies. The length of credit history is 15% of your score. This will account for free credit karma reports how long ago your accounts were opened and the time since your account was active. Amounts borrowed are 30% of your score and that includes the amount of credit available that you use on revolving accounts. Type of credit utilized is 10% of your score and this includes the mix of accounts like installment and revolving. New credit is also 10% of your score, showing your pursuit of any new credit karma such as credit inquiries.

Some people think their demographic and personal information can affect the score but race, age, address, income, marital status and employment do not affect your score. Improving your score significantly can take time but it does not mean it is not impossible. You should focus on paying your bills on time, paying your outstanding balances and do the best that you can to stay away from new debts. In no time, you will have a better rating which will qualify you for loans in the future and will give you confident about your financial standing.


















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