How is a Credit Score determined?

* Severity (30,60,90,120,150,180, Charge Off, Repossession, Collection, Etc.)

* Recent (Last month or 6 years ago)

* Frequently (1 time 30 day late or 6 times 30 day late)

* Large outstanding balances ($5,000 in collections + $5,000 in auto loan balance = $10,000 towards your debt ratio)

* The ratio of balances to credit limits ($200 balance on a $300 spending limit)

* Age of the trade lines (age of single account, or average age of more than one accounts)

Example: 4-year seasoned auto loan on your credit report. Then you open a new account
= Average age goes down to 2 years!

* Mr. Credit Solutions rule of thumb is no more than 6 inquiries within a 2-year period

* No such thing as a soft or hard hit

* Having a Mortgage loan, auto loan, credit card, student loan, etc.

Delinquencies (30-180 days): A delinquency may remain on file for seven years; from the date of the initial missed payment.

Collection Accounts: May remain seven years from the date of the initial missed payment that led to the collection (the original delinquency date). When a collection account is paid in full, it will be marked as a "paid collection" on the credit report.

Charge-off Accounts: When a delinquent account is sent to a collections company. This will remain for seven years from the date of the initial missed payment that led to the charge-off (the original delinquency date), even if payments are later made on the charge-off account.

Closed Accounts: Closed accounts are no longer available for further use and may or may not have a zero balance. Closed accounts with delinquencies remain for seven years from the date they are reported closed, whether closed by the creditor or by the consumer. However, the delinquency notation will be removed seven years after the delinquency occurred when pertaining to late payments. Positive closed accounts continue to be reported for ten years from the closing date.

Lost Credit Card: If there are no delinquencies, credit cards reported as lost will continue to be listed for two years from the date the creditor is contacted. Delinquent payments that occurred before the card was lost are reported for seven years.

Bankruptcy: Chapters 7, 11, and 12 will remain on one's credit report for ten years from the filing date. A Chapter 13 bankruptcy is reported for seven years from the filing date. Accounts included in a bankruptcy will remain for seven years from the date reported as included in the bankruptcy.

Judgements: Remain seven years from the date filed.

City, County, State, and Federal Tax Liens: Unpaid tax liens remain for fifteen years from the filing date. A paid tax lien will remain on one's score for 10 years from the date of payment.

Inquiries: Most inquiries listed on one's credit report will remain for two years. All inquiries must remain for a minimum of one year from the date the inquiry was made. Some inquiries, such as employment or pre-approved offers of credit, will show only on a personal credit report pulled by you.