Estimating Your Credit Score

2010 March 17
by iggy

Your credit score is part of your life.  There is no escaping it.  It is as sure as life,death, and taxes.   A credit score can be good, bad or mediocre. The score can change easily, and can either go up or down, depending on your credit habits.
People often see only certain basic items that affect their credit score, payment of bills, payment of utilities, and the payment of loans. They see these items as the full extent of their credit score. However, these are only a small portion of your entire credit score. You may be paying off your bills quite well, making repayments on your credit card on time but still have a low or bad credit score. What some people cannot see is that other items can seriously affect their credit score. Some of these are how much income you make, whether you are a regular employee or not, whether you are self-employed, the location you live in, the number of children you have, whether you are married or not and a host of many other things that impact your overall credit score.
Hence, it is understandable when people have a misconception and have a wrong estimate of what their credit score is. This is understandable as not everyone has knowledge and expertise on what should be included in an individual’s credit score. It takes long years of practice and exposure to the business of loans to get a clear grasp of what can and what cannot affect your credit score.

Fortunately the experts on home loans have prepared a free credit score calculator.

With their expertise in the field of  mortgages, you can be assured that if you input the right information into their calculator, you can get a fairly clear estimate on what your credit score is.  With their help, if you have a bad credit score they can aid you in improving it, and if you have a good credit score, then they can help you get a home loan that is suitable for you.

3 Responses leave one →
  1. January 16, 2015

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  2. July 15, 2015

    First, no, having a lot of creidt cards is *not* bad for your score. There are plenty of people with dozens of creidt cards and a FICO score over 800. Note that there are actually different types of FICO scores, optimized for different purposes (e.g. creidt cards, car loans, mortgages) and they are affected in slightly different ways. Having variety in your creidt report counts for a small percentage of your score, but not large enough a percentage for you to stress over.What does matter about having multiple cards is your overall account age, and your ratio of debt to available creidt. As such, my general advice is to *avoid* closing accounts (and I’ll elaborate on that). If you have $2000 of debt (or you use $2000 each month, and pay in full, which is definitely best) and you have $15000 in available creidt, your utilization will be good. If closing cards drops your available creidt to $4000 but your debt/monthly charges remain the same (they look the same on a creidt report) your score will drop *significantly*.Finally, keeping those accounts open keeps the overall age of your portfolio higher (and continues to grow it). This is an important part of FICO. If you aren’t using a card, but it isn’t hurting anything, dust it off from time to time for some quick use* and toss it back in the sock drawer.*Note that a creidt line which hasn’t been used for a long period of time actually factors less on your score. By using it again it applies freshly, and thus keeps your score healthier. This also helps to avoid account closure due to inactivity.If you close a card, do it because it isn’t worthwhile (e.g. if that old Orchard Bank card costs money every year, and isn’t doing anything for you, you can consider closing it out).

  3. November 24, 2023

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