In these times, everyone’s credit scores have been impacted some way or the other. To help its customers build back their credit score, http://www.5creditrules.com/ provides helpful guidance and knowledge to help them get back on the feet.

Credit of an individual is governed by the help of the three rules. All the lending agencies whether banks, lenders, all follow the credit rules in making their underwriting decisions. Let us look at the 3 credit rules:

1.Credit scores are calculated using algorithmic formulas which differ from one credit bureau to the other.
2.Debts are different in nature.
3.The details which are stated in the loan documents are vital.

Most of the US citizens are aware of the existence of these 3 credit rules but most of them have no understanding of how these can impact the lives.

So here we start with the first credit rule; this is all about the formula which governs the credit score.

The credit score is a factor of 5 different factors and their contribution in the weight age to the credit score calculations.

1.Repayment history of the bills and the debts: This constitutes 35% of the overall credit score.
2.Payments overdue: This constitutes around 30% of the credit score
3.How long the people have been using the credit: This constitutes around 15% of the credit score.
4.Any new loans or credit line constitutes 10% of the credit score.
5.The different types of credit accounts constitute around 10% of the credit score.

The above description basically shows the different areas which constitutes to the credit score and how one needs to keep a track of them. Some of the steps which could have a positive bearing on the credit include:
- Maintain a good repayment track of the bills and the dues.
- Avoid using credit card to the maximum possible extent.
- Continue the older credit accounts as it increases the length of the credit history.
- Closing accounts are often considered foolish. This is owing to the fact that a live credit line shows that the person is reliable and the lenders believe in him and hence so many credits.

Here comes the second credit rule which says that all debts are treated separately from the credit calculations perspective.

Debts include student loans, automobile loans, mortgage loans and the most frequent and the killer debt –the credit card debts. Amongst all credit card debt can do maximum damage to the credit standing of an individual. In fact the credit card debt can have a 30% bearing on the credit score. It is therefore important to get rid of them in the first place, much earlier than any other debt.

The third and the last credit rule is that the small details are great value and have a bearing on the credit score.

Most of the companies come up with the details which confirm that one should look at the minute details of the terms and agreement of any loans or financial transactions.

Some of the common statements which confirm that the fine details are there include: certain rules apply, please see the details of the offer document, pricing is subject to the state laws etc.

The fine print is often given in a way so that the customers skip them. However, it is of great importance to visit the fine prints. These sometimes contain the most vital information. Certain clauses in the fine print can mean a huge amount of money and can make one reject the offer.

About http://www.5creditrules.com/
This is a helpful site that gives you complete information regarding the credit score and ways to maintain it. Please visit the site for further information.