What's In A Credit Report?

Credit reports are automated and rely on a credit “scoring” system that analyzes about 100 variables to gauge the likelihood that the borrower will make on-time payments.

The information used is obtained from retailers, lenders, credit applications, etc., and the main criteria and their approximate percentage of importance are:

Payment History – 35%

Amounts Owed – 30%

Length of Credit history – 15%

New Credit (Warning of Too Much Debt) – 10%

Types of Credit – 10%

Credit scores usually range from 400 – 900, although a score of “N/A” is also possible, meaning that no score is available.