HOW TO GET THE CREDIT SCORE YOU WANT.....

The following 2 items count for about two-thirds of your credit score:

Your Payment History
Having a long history of making payments on time on all types of credit accounts is one of the most important items lenders consider before approving a loan.

Owed vs. Available Credit
This compares the amount you owe versus the total amount of credit available. Your credit score can be lower when you use more than 50% of your available credit for each account. This is because when you are at the point of possibly maxing out your credit limits, lenders see you as a higher risk and more likely to have late payments in the future.

The following 3 items count for about the last one-third of your credit score:

Length of Credit History
A credit report containing a list of accounts opened for at least 5 years or more will help your credit score.

New Credit
Opening several new accounts in a short period of time can lower your credit score. Along the same lines, multiple inquiries may also lower your credit score.

Type of Credit Used
A mix of credit cards, retail accounts, finance company loans, installment loans and mortgage loans will help your credit score, as long as they all follow the above rules.

About 13% of Americans have a credit score of 800 or higher. If you were to look at their credit report, they generally have:

· 4-6 credit card accounts
· No late payments in the last 3 years
· At least one installment loan (mortgage or car) with excellent payment history
· An average of 3 years credit history and a few accounts with 5 years of good history
· Low number of credit inquiries (less than 3 in a 6 month period)
· No bankruptcies, foreclosures, judgments, charge-offs or collections
· Debt limits at no more than 35% of their overall credit limits per account

To sum it up, having a long history of on time payments, using the right mix of credit and not maxing out on available credit are the keys to having a great credit score.