We Work To Get You On The Road To Financial Freedom, And Help Improve Your Credit Score.
How Your Credit Score Is Calculated:
American No Debt, LLC works to completely eliminate credit card debt and dramatically improve your credit score. Because we are about to dramatically improve your credit score, it will help you to know how your credit score is calculated.
Each lender keeps records on the amount of each loan, and how you resolve payment of each loan. Each lender then reports the result of each loan payment to the credit bureaus. The bureaus then combine your loan reports to determine your credit score.
What Factors Do Bureaus Use To Calculate Your Credit Score?
Credit scores represent many factors that affect your status as a borrower. Four factors have the greatest impact in the formulation of your credit score.
 Payment History: Approximately 35% Of Your Credit Score
Your Payment History score measures whether or not you pay your bills on time.
Among other things, the payment history score measures:
1.If payments are made on time.
2.The number of late payments you made.
3.How long lenders had to wait for late payments to arrive.
4.How long ago or how recently late payments have been made.
5.If you have had accounts go to collections.
6.If you have ever filed for Bankruptcy.
Debt To Income Ratio - Approximately 30% Of Your Credit Score
The Debt To Income Ratio score measures the total amount of debt you owe and the types of loans you have. It is also influenced by your income level.
Among other things, the Amount Owed score measures:
1.The percentage of the total credit line that you have borrowed.
2.The amount you owe compared to your income level.
3.The interest rates of your current loans.
4.The number of lines of credit or loans you currently have open.
5.The number of loans or lines of credit that are carrying balances.
6.The pattern of change on the loans - if you are getting further in debt, or if you are paying off your debt.
Credit History - Approximately 15% Of Your Credit Score.
Lenders prefer to reduce their risk of loaning money by lending to people who have a record of paying off loans over time. Lenders hope to reduce their risk by lending to borrowers with longstanding credit accounts and a proven record of paying off loans.
The Credit History Score Indicates:
1.How long you have been borrowing from lenders.
2.How long you have maintained specific lines of credit.
3.How often you use your credit accounts.
New Credit -Approximately 10% Of Your Credit Score.
The New Credit Score indicates recently opened lines of credit. This score helps lenders determine if a borrower is suddenly taking on a lot of debt in a short period of time.
New Credit score is calculated by:
1.The number of new loans or lines of credit you have established.
2.How much time has passed since you opened new credit accounts.
3.The number of times you have requested new lines of credit.
4.How long it has been since a lender inquired about your credit.
Credit And Loan Mix - Approximately 10% of your credit score.
There are many kinds of loans, and some types of loans are a higher risk than others. Lenders like to see a mixture of unsecured and secured debt.
Your Credit And Loan Mix Score is based on:
1.The number of credit cards you hold.
2.The number of installment loans you have.
3.Any mortgage loans you have taken out.
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