Credit Report Score Charts

Credit report score charts are useful tools for lenders to determine the risk that an individual may bring to a loan. They are usually divided into five categories. These categories include: payment history, current amount owed, credit history length, new forms of loans, and the type of credit in use. Each of these categories is given a percentage of weight as to how it affects the financial rating of the individual. The first three listed account for 80 percent, while the last two are relatively unimportant, comprising only 20 percent of the credit report score chart.

The first, and most important, category makes up 35 percent of the the payment history of the individual and his credit report score chart. This involves such information as making payments on time and the ability of the individual to repay the entire loan or debt within the given period of time. Negative information is usually closely reviewed, but positive information can also be important for the consumer. A credit report score chart shows that the ability of the consumer to make payments is the most important factor for evaluation.

The next category is the current amount of debt owed. On most credit report score charts, this category is assessed at 30 percent. The important information here is the total amount that is owed on all accounts. This will take into account any loans, loan cards, and any other form of borrowed money that still must be repaid. Also, many lenders will view how many forms of loans the individual has, and, of those, how many have balances that must be repaid.

The final category that carries much significance is much less important than the first two. On credit report score charts, the length of financial history of the individual is given a percentage of 15. Most often, scores for individuals with longer terms will be much higher. The important information that is viewed here is the length of time that any credit has been established. Also, how long certain accounts have been established and how long it has been since they were utilized may be useful in the evaluation process. As Christians, we represent our Lord Jesus Christ to the world. Second Corinthians 5:20 says, "We are ambassadors for Christ." How we handle our finances is an essential part of that representation. That means that our credit report score chart should live up to an ambassador's reputation. When we mishandle our money, we do not shine for Jesus.

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