Free Credit Reports Personal Credit Rating

Your personal credit rating is combined from information located in your credit bureau files, and with detail you provide, such as your income and job history. Under the Equal Credit Opportunity Act, your personal credit rating may not use certain characteristics like; race, sex, national origin, or religion as factors. However, creditors are allowed to use age in determining your personal credit rating. Credit ratings are evaluated using the following types of information in your credit report:

· Are your bills paid on time? Payment history is a typically significant factor. If you have paid bills late, had an account referred to collections, or declared bankruptcy it is likely that your personal credit rating will be affected negatively.

• What is your outstanding debt? Your personal credit rating will be affected negatively if the amount you owe is close to your credit limit.

• How long is your credit history? Generally, your credit rating can be affected negatively or positively depending on how short or how long you have had your credit file.

• Have you had an excess of credit inquires recently? If you have applied for too many new accounts recently, that may negatively affect your score. However, not all inquiries are counted. Inquiries by creditors who are monitoring your account or looking at credit reports to make "pre-screened" credit offers are not counted.

• How many and what types of credit accounts do you have? Although it is generally good to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, the type of credit accounts you have, like the loans from finance companies may negatively affect your personal credit rating.

Your personal credit rating may be based on more than just information in your credit report. For example, it may contain information on your job or occupation, length of employment, or whether you own a home.