Factors That Make Up Your Credit Score

Precise details of a FICO (Fair Isaac Corporation) score are never publicized. After having seen your score, do you wonder what factors credits scores are based on?

Being behind on payments always negatively affects your credit score. Payments that are received more than 30 days after due date is considered late. Majority of the creditors report all payments that are late and sort them out in different batches. So, if you are late even just for a day, there is a possibility that your account will be reported alongside those that are 59 days late. Yes, that can happen.

Your credit balance gives your lenders an idea of how much cash you have in hand and your credibility as a paying borrower. High balances create a negative impact on your credit score.

Don’t resort to opening several credit card accounts at a time as this may cause an issue with your lender. Because of such, you might be subjected for multiple credit inquiries since it will seem that you are strapped for cash, which isn’t doing any good to your credit score.

If your credit cards are maxed out, not only you will suffer but so will your credit score. Make sure that your balances are less than 35% of the available credit. It can sound pretty hard, but it’s totally achievable.

The longer your credit record is, the better it is for your rating. Have different kinds of credit card and never close down old ones as these will help you improve your score.

With a little more time and effort you can pretty much increase your score. Don’t let your credit score overwhelm you. You can always do something about it if you’re unsatisfied.

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