U.I.G. Factors Corp

Credit Resources

Credit Inquiries

Each time your credit file is inquired on, your credit score drops a few points for a relatively short amount of time. If you have too many inquires in too short of a time, it can dramatically. lower your short term credit score. If you have 5 or more inquiries in a 30 day span, it begins to significantly impact your score. Go ahead and apply for what you need. The key is to simply be aware of this, and to avoid applying recklessly rather than to avoid applying altogether. Cable hookups, department stores, automobile shopping, apartments, all count as inquiries and can lower your score. Most Banks will also now check your credit when you open a new account.

Many, but not all companies have begun to screen auto dealer and mortgage inquires out of what they consider inquiries since they know you are shopping for a deal rather than trying to debt pyramid.

Time in File

The date your first “loan” of any kind, including any type of credit card was established. The older this date is the better and will lower the affect current derogatories will have on. your credit score. The more accounts you have that you have never been late on, and the longer you have had them will mean that if you have a 30 day late, it will not affect your score nearly as much as if your time in file is short. A 30 day late will lower the score of an average 25 year old much more than it will lower the score of the average 45 year old.

In essence, you have built up a “store” of good credit. It is imperative if you are young, not to allow anything to show up as late on your credit. It will only make it that much harder for you down the road. A longer time in file will also lower the affect that charge offs, and unpaid accounts will have. Instead of having catastrophic affects on your credit score, it will be significant.

High Credit

The higher this figure is in your credit file, the more likely it will be for you to get approved for a loan request.

Example: If you are applying for a $20,000 credit card, even with good credit, good income and a credit score of over 700, if your credit file’s highest credit card has a $2,000 limit, it is doubtful you will be approved for a $20,0000 limit simply because you do not have comparable credit. The lender will feel that you have show excellent responsibility with $2,000, but you have not shown that you will satisfactorily handle a much larger loan. If you took out a car loan that had a much higher balance, it will help, but the lender may still look to see what is the highest credit card limit you have and make their decision about the limit based primarily on that.

Number of Tradelines

The number of Tradelines you have can have either a positive or negative affect on your credit bureau. A trade line is any type of loan, credit card, line of credit or mortgage that shows up on your credit file. The more of these that you have always paid on time on, in general, the stronger your credit file is and the higher your credit score will be.

Exceptions to this are:

- If you have significant balances on many accounts

- If you have many credit cards, even without balances on all. This will drive up your total unsecured credit available, which the credit bureaus consider in determining your credit score.

- If you have opened up a high number of accounts in the most recent 60 days, a potential lender reviewing your credit report may be alarmed at the number of new accounts you have opened and will be worried that you haven’t had enough time to show how you will be able to handle the new accounts. You will be considered a higher risk.