How your credit scores are determined

Your credit scores are determined by the following estimates & breakdown:

10% types of credit in use
10% recent inquiries on your credit report
15% length of your credit history
30% outstanding debt
35% payment history

questions or comments, contact:

Nikitas Tsoukales
President
Virgin Credit
617.265.7900 Direct
info@VirginCreditRepair.com
www.virgincreditrepair.com

Have cards but manage them.....

In general, having credit cards and installment loans in your name and paying them on time will increase your credit scores. Someone with no credit cards, for example, tends to be higher risk than someone that has managed debt responsibly.

Nikitas Tsoukales
President
Virgin Credit
Expert Credit Repair
617-265-7900
www.virgincreditrepair.com
info@virgincreditrepair.com

Moving debt around

The most effective way of improving your credit score is always paying down your outstanding debt. Moving debt from one credit card to another will almost never increase your score. In fact, many times consolidating all of your credit cards into one revolving credit line can decrease your credit score.

Having $5000 in credit card balances spread evenly over 5 credit cards is always a better bet than having $5000 on one credit card when the limit on that card is $5000.

Feel free to contact me with any questions or comments!

Nikitas Tsoukales
President
Virgin Credit
686 Morton Street
Boston Ma 02126
617.265.7900 office
Nikitas.Tsoukales@VirginCreditRepai.com
www.VirginCreditRepair.com

Maxing out credit cards

One of my favorite phrases you will see concistantly on this blog is "rule of thumb". A great "rule of thumb" is to keep your credit card debt under 50% of the max limit. That is ofcourse if presently you cannot get it paid down to $0. Having balances over 50% can have a negative impact on your score with the 3 major credit agencies. Lenders may also think you are borrowing more than you will be able to pay back. Try to only use 30% of your available credit and always make it a priority to get the credit card paid down to $0 if possible.

Nik Tsoukales
President
Virgin Credit
617.265.7900 Office
info@VirginCreditRepair.com
www.VirginCreditRepair.com

Length of Credit History

Approximately 15% of a credit score may be based upon amounts owed or other outstanding debt. A credit score can be positively impacted the longer that accounts have been open, especially if they are with one financial institution.

Nik Tsoukales
President
Virgin Credit
617.265.7900
Nikitas.Tsoukales@Virgin-Credit.com
www.VirginCreditRepair.com

Closing out old accounts

Closing out old accounts generally does not raise your score. Doing this in many cases will lower your score. Late payments on old accounts wil not disappear from an old acount by the closing the account. Long established accounts show a longer history of managing credit which is good for a credit score.

Nik
President
Virgin Credit

What 35% of your credit score may be based upon.

Approximately 35% of a credit score may be based upon amounts owed or other outstanding debt. A credit score can be negatively impacted if the amount owed is close to the credit limit. A low balance on two credit cards may be better than a high balance on one credit card.

Nik
Virgin Credit