Worried About Credit? No credit/bad credit? It's easy to solve the credit puzzle.

Credit scores are measured with software designed to provide lenders with the ability to determine the credit worthiness of borrowers and their likelihood to repay.

The three credit score repositories, TransUnion, Equifax and Experion use this software to come up with a number between 300 - 900.

Several factors are considered for the credit score:

• Payment History (35%)
• Outstanding Credit Balances (30%)
• Length of Credit History (15%)
• Mix of Credit (10%)
• Credit Inquiries (10%)

What is not considered? Age, race, national origin, gender, where you live, income, employment history, occupation, employer, marital status, family/child support.

If you don't have a credit history, you can build one with:

• Non-traditional Credit
  • Rental History
  • Cell Phone
  • Utility Payments
• Start Building Credit
  • Apply for a small limit credit card with a gasoline company or a department store
  • Open a secured credit card
  • Obtain a student loan or car loan

Why you should establish and maintain a good credit history:

• Obtaining student loans for a college education
• Some employers look at credit scores before they hire new employees
• Promotions
• Home Mortgages
• Business Opportunities
• Services that require credit cards (car rentals, hotels)
• Emergencies

Five ways to improve your score:

• Always pay at least the minimum payment due and on time
• It is good to have your balance as low as possible
• Keep older accounts open
• Avoid new credit card offers
  • It will be a new account with no history and it will be an inquiry on your credit
• Keep a good mix of auto, student loans, credit cards and mortgages

Still worried about your credit? Contact The Cauley Team today at 248-642-4600. Email Perri Cauley at perri@mrploan.com or email Michael Cauley at advisor@mrploan.com.