 | Richard Ciemny is Vice-President, Director & Branch Manager of The First National Bank of Anthony, Wichita Branch. Richard has been in the banking profession for many years in the Wichita area. He has been an active member of the Kansas Bankers Association and the Community Bankers Association of Kansas. The First National Bank of Anthony, Wichita Branch, is located at 10111 W. 21st St. North. You may contact Richard at (316) 721-9000. |
Banking & Finance
2003-01-01 11:40:00
What is a credit score?
: What is a Credit Score as it relates to applying for a loan?
ANSWER: A credit score is a method of determining the likelihood that credit users will pay their bills. Scores are calculated using scoring models and mathematical tables that add or subtract points for different pieces of credit information that best predict future credit performance. These mathematical models were developed after studying the credit histories of millions of consumers. The specifics of how these scores are computed is a closely guarded secret, however, we do know that the following items will impact your score.- Late payments- The length of time credit has been established- The amount of credit used versus the amount of credit available- Employment history- Negative information such as bankruptcies, foreclosures, judgments, liens, collections, charge-offs etc.If you feel that your credit score is low contact the institution that provided you with this information for a thorough review. The good news is that poor credit is repairable with a little time and effort on your part. There is no magic to improve your credit scores overnight however, once you start to demonstrate a good payment history and resolve any negative information your credit score will begin to grow. Here are some of things that you can do to maintain good credit or begin the process of clearing up poor credit.Pay your bills on time. Late payments and collection accounts can have a very negative impact on your score.Do not apply for credit frequently. If you have frequent inquiries on your report it could mean your shopping for credit and can reduce your score.Reduce your balances. Max out your credit card and making minimum payments even if they're on time can have a negative effect.If you have little or no credit history obtain addition credit sources and pay your bills on time. This will begin to develop your history.
