OpenSky Helps Cardholders Get To the Bottom of Credit Score Calculations
Rockville, MD (PRWEB) February 26, 2014 -- With credit scores playing an increasingly important role in people’s lives, it has never been more vital for consumers to know and, more importantly, understand their credit score. Yet, surprisingly, many consumers don’t seem to know what exactly goes into calculating that magic number — nor do they understand their ability to take control of it.
Credit scores, which range from 300 to 850, are essentially a number used to predict how a consumer will pay their bills. As a record of their credit history, the number is calculated from a variety of different factors, all of which are weighted differently. Understanding those different factors is the key to turning poor credit into good credit.
“Credit scores have become a part of daily life,” says OpenSky President Nick Bryan. “Unfortunately, too many people focus on the number without understanding what’s behind it. The truth is, knowing what goes into the score is the key to making sure it improves and stays high.”
While the exact calculation of the credit score is proprietary information, there are some general guidelines. The greatest part of the score, 35%, is based on payment history and only includes late payments that are more than 30 days past due. 30% of a credit score is based on the percentage of credit capacity being used (the ratio of current debt in comparison to total available credit). Length of credit counts for 15% of a credit score, with the final factors being types of credit (10%), and new credit (10%), based on recent searches for credit and/or the amount of credit recently obtained.
“Clearly,” says Bryan, “with payment history being the key factor in your score, establishing a record of timely payments is critical. Our product, the OpenSky card, is a credit-building and rebuilding tool. We report monthly payment activity to all 3 major credit bureaus — so by simply using our card for daily purchases and making on-time payments, you can significantly improve your credit history. Better still, we don't require a credit check, so credit history isn't a factor in obtaining an account”.
As he says, “For too many consumers, a high credit rating can seem like an impossible dream. We’re here to show them it’s not. With the right credit product, anyone can improve their credit score.” To find out more about OpenSky, visit http://www.OpenSkyCC.com.
About OpenSky:
OpenSky is a business line of Capital Bank, N.A., a full service commercial bank in the Washington, D.C. metropolitan area. A top-ranked bank based on performance, it is the only bank in Maryland and Washington, D.C. to make the American Bankers Association Journal (ABA Journal) list of top 100 performing community banks in the class of over $100 Million in Assets. With nearly $500 in assets, Capital Bank offers a full range of banking services including cash management, commercial lending services, residential mortgage and consumer credit. For more information about the Bank, visit http://www.capitalbankmd.com. Member FDIC. An Equal Housing Lender.
Ksenia Valentine, Capital Bank of Maryland, http://www.capitalbankmd.com, +1 301-468-8848, [email protected]
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