The implementation of credit scoring profoundly affects the home-buying experience for consumers, forcing some with blemished records to pay more for the home of their dreams. Unfortunately this includes borrowers with a perfect payment history who have too much credit or too little credit in addition to the 7 out of 10 credit reports that contain errors. Credit history which is a part of the report for the last seven years. The amount of outstanding debt, which is being reported on file - for instance the credit limit, approved on an account and the relationship of the balance to that amount. The length of time the account has been in use.
New accounts are a negative in the scoring process.
It appears credit history derived within the last two years bears the most weight on the score. Therefore, if a borrower has paid all accounts as agreed for 20 years and has one or two 30-day credit card lates within the last 12 months, the score will be negatively impacted. The time between negative reporting and the reporting occurrences of negative reported information is the most influential factor in credit scoring. Well that's the secret. In some Black Box is found the answer.