Ever get turned down for credit and see the reasons, not knowing what they really meant? Wondering why your score isn’t as high as what it could be? These are some of the reasons that a credit score on a credit report isn’t higher and some of the terms you may encounter should you be turned down for credit.
If a “serious delinquency” is shown it will mean that you have late payments showing up on one or more of your accounts. Check your report and see if that is factual and if not, get it off your report to boost the score.
Serious Delinquency, Public Record of Collection Filed
If a “serious delinquency and public record of collection filed” is shown it simply means that you have had accounts reported to a collection agency, usually one or more. Again, if it is true there is nothing that can be done, but clear up any false reporting.
Level of Delinquency on Accounts
If a “level of delinquency on accounts” is shown that is from having an over 60 days past due account, at least one account if not more. If it’s true, try to negotiate these accounts down to at least 30 days past due or completely removed from the record.
Time since Delinquency is Too Recent or Unknown
If a “time since delinquency is too recent or unknown” is shown you have an account that is been past due recently. Again, if this is true, try to call the company and negotiate to have it removed from the record.
Length of Time Accounts Have Been Established
If a “length of time accounts have been established” is shown your credit is too new in the reporting agency’s eyes. There is not much that can be done, just remember to not close your oldest cards even if you aren’t using them any more to keep this from happening.
Too Many Accounts with Balances
If a “too many accounts with balances” is shown it will mean that you have too many accounts that have their credit used, making it suspicious how you’d do with more credit. Try to keep your balances down to at least 25% of the cards limits, if that much.
Amount Owed on Accounts
If an “amount owed on accounts” is shown it means that you simply have too much debt. Pay off some cards or pay down your debt to get your score raised slowly.
Proportion of Balances to Credit limits on Revolving Accounts is Too High
If a “proportion of balances to credit limits on revolving accounts is too high” is shown it shows that you have very high credit balances in proportion to your credit limits. Again, pay down your debt and keep to under 25% used to keep your score right.
Number of Accounts with Delinquency
If a “number of accounts with delinquency” is shown you have many past due accounts being shown, making you not a good credit risk. The only way to help this is time.
Figuring out why your score is low is much easier than fixing it. Keep on top of credit reports and clear out offending material early, before you need to use the report.