How credit reporting works. Learn how credit ratings work.

http://www.transunion.com

So you might be asking yourself, "How does credit reporting work?"
To help you better understand how, TransUnion—The Source has released the following video.
TransUnion is committed to helping you understand the role credit plays in your life, how day-to-day decisions influence your credit rating and how you can access and use credit to achieve your own goals.
Here are some of the factors the basic credit scoring formula takes into account: * Payment history -- A good record of on-time payments will help your credit. * Outstanding debt -- High balances in relation to your credit limits can harm your credit. Aim for balances under 35%. * Credit account history -- An established credit history makes you a less risky borrower. Think twice before closing old accounts before a loan application. * Recent inquiries -- When a lender or business checks your credit, it causes a hard inquiry and a slight ding to your credit score. Apply for new credit in moderation. * Types of credit -- A healthy credit profile has a balanced mix of credit accounts and loans.
For more information on how credit scoring works your credit score, visit:
http://www.transunion.com/corporate/p...
ort/consumerResources/how-does-credit-sc­oring-work.page

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