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National Credit Report

By: EconomyWatch Date: 28 August 2009

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National credit report can be secured by applying to any of the leading credit agencies in the country either by phone or in writing. Most credit agencies have different types of information about applicants, which means the credit ratings differ. However, the creditors generally refer to just one credit report and then, take a decision.

National Credit Report: Scores and Their Calculation

National credit scores are calculated by considering payment history and other credit related factors. The payment history accounts for around 35 percent of the score. Payment history identifies:

the payment trend
number of late payments
negative payment entries such as liens and bankruptcy

The total debt amount represents 30 percent of the national credit score. A higher ratio of debt and income decreases the credit score.

Longer positive credit history contributes around 15 percent to the national credit score whereas new credit represents around 10 percent. The remaining 10 percent is contributed by other factors such as the types of credits. People with mixed credit have better scores than those who have just one kind of credit.

Good Credit Score: National Credit Report

The credit score ranges from 300 to 850. The average national credit score of the US is around 600-700. The more the score, the better credit history it portrays.

Consumers with score that is above 700 enjoy good credit opportunities and get the lowest interest rates. However, people with lesser than 600 credit score are considered risky borrowers and are offered the least attractive lending terms with high interest rates.

National Credit Score: Protect it

Protecting national credit score is essential for maintaining a positive credit report. Wrong or erroneous information can lower your score even without being your fault and can cause long lasting effects on it. It is vital for a person to review the national credit report carefully.

Consumers also need to protect themselves against identity theft. There are many ways like credit freeze to keep a check on such identity thefts. However, the best way is to keep checking your national credit report every quarter.