Posted on: 18th Jun, 2009 06:06 am
One of my friend trying to buy land and he has applied for loan but bank told him his credit is less.
so what is mean by credit..??
how much credit is required for to buy land..??
How credit will be increase?
Thanks In advance..!!
so what is mean by credit..??
how much credit is required for to buy land..??
How credit will be increase?
Thanks In advance..!!
This what your credit consist of
Credit Score:
Your credit score and report is based on the following
35% is based on payment history
30% Amount you owed
15% length of history
10% New credit
10% on types of credit
As you can see 35% is payment history, as you are making payment on time now, it will help you to improve the score quickly and the next 30% is how much you owed. As you keep making payment it will reduce the amount you owed helping again to improve your score and report.
15% is length of credit history, which i assume you have pretty good history
All this will result in credit score. This number is any where between 300 - 850. The higher the number, the better it is.
So looks like your friend has bad credit score
Credit Score:
Your credit score and report is based on the following
35% is based on payment history
30% Amount you owed
15% length of history
10% New credit
10% on types of credit
As you can see 35% is payment history, as you are making payment on time now, it will help you to improve the score quickly and the next 30% is how much you owed. As you keep making payment it will reduce the amount you owed helping again to improve your score and report.
15% is length of credit history, which i assume you have pretty good history
All this will result in credit score. This number is any where between 300 - 850. The higher the number, the better it is.
So looks like your friend has bad credit score