5 Important Factors That Affect Your Credit

Almost everyone knows what a credit score is, and ultimately the way it can affect them when it comes to credit related decisions. When you've got a goodcredit history, it is likely you will be granted credit easily whenever you try for it. Obviously, the contrary applies in case your credit score is poor, or if you happen to have multiple damaging entries on your credit file.

Credit scores happen to range from 300 to 850, and so, there are a variety of actions to take (or avoid doing) for increasing your credit ranking. As recently published in the San Francisco Times, below is a list of the top five things which can impact on your credit score and credit report if either a positive or negative way.

Payment Record (35%)
Your payments history is actually the installments you've made to creditors prior to now. It reflects the rate at which you've made the payment (i.e. the interest rate applicable to the financing facility) and of course how timely that payment was.
If you pay everything on time, you can expect this to reflect in a positive way onto your credit score. However, for those who miss payments or a late with them, this can surface as a negative entry on your credit rating.

Current Amounts Owed (30%)
Definitely is another big one. Current amounts owed really are recorded on your credit report file, and this ensures that if you've got a huge amount of debt, potentially new creditors can get to see it. Too much debt is never a wise decision, and can potentially destroy your financial future. But the good news is that by being here and learning all you can, you're making a step forward. Don't forget to take Identity Guard's FREE offer here!

Credit History (15%)
This is certainly area of the credit report that takes in to account the literal history of your record. Just how long have you been an engaged consumer, and exactly how many financing facilities have you tried for? How did you perform when you had to pay back amounts before? Each of these questions can be answered on the credit report history section, whilst there’s not much you can do about that - still it counts towards 15% of the credit score.

New / Used Accounts
If you ever rush out and apply for 10 different cards, all of those applications will likely be reflected on the credit report. Hence, new creditors are unlikely to offer financing in the future since they see that you have approached a number of organisations for money. Just be sure to only apply to one agency at a time to stop this “new creditor overload” from happening to your credit report.

Type of Credit You Have
Did you know that the type of credit you have can actually influence your credit report file or credit score? Indeed, when you have more credit cards than bank loans (and you are managing to pay everything off on time) - your score will be better. If you’re hoping to raise your credit score, it might be worthwhile to take a look at the types of credit you are currently using, and perhaps change these around for a more desirable combination. credit scores

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