If you've ever wondered what exact factors go into determining your credit score, then you're in luck because I'm going to reveal those factors to you in this article.
We aren't exactly taught a whole lot about how to maintain a healthy credit score in school, so I'm very happy to be able to reveal once and for all what specific things are most important for your credit score. Even though there are literally hundreds of properties that have some sort of effect on your rating, there are a few that you can focus on if you want to increase your credit rating.
First of all, your payment history has a large effect on your credit score that is not to be understated. Even an occasional late payment on your credit report can have harsh consequences for your credit rating, while you will be rewarded for maintaining a healthy history with your payments.
Debt to credit ratio is also an extremely important factor for your credit rating. No lender wants to give loans to someone who is already over extended, and your debt to credit ratio is the method which is used to determine this.
A third factor that plays into your credit rating which many people tend to overlook is the average age of your credit accounts. Young people typically struggle with this aspect of their credit rating. The only straightforward way to deal with this problem is to leave your accounts open and wait. Let me give you some credit rating tips: never close an old account unless you have a very good reason to, and avoid opening too many new accounts if you already have a good average age on your accounts.
There are many other minor details that play their own role in determining your credit worthiness, but it is most efficent to focus on the things that are the most influential and most in your control.
A credit score can be an intimidating thing, but if you consider that it is really just a somewhat simple number that gives lenders an estimate of your trustworthiness, you will begin to realize that your credit rating is something that is ultimately in your own control. Your score will be as good or bad as you make it. - 33385
We aren't exactly taught a whole lot about how to maintain a healthy credit score in school, so I'm very happy to be able to reveal once and for all what specific things are most important for your credit score. Even though there are literally hundreds of properties that have some sort of effect on your rating, there are a few that you can focus on if you want to increase your credit rating.
First of all, your payment history has a large effect on your credit score that is not to be understated. Even an occasional late payment on your credit report can have harsh consequences for your credit rating, while you will be rewarded for maintaining a healthy history with your payments.
Debt to credit ratio is also an extremely important factor for your credit rating. No lender wants to give loans to someone who is already over extended, and your debt to credit ratio is the method which is used to determine this.
A third factor that plays into your credit rating which many people tend to overlook is the average age of your credit accounts. Young people typically struggle with this aspect of their credit rating. The only straightforward way to deal with this problem is to leave your accounts open and wait. Let me give you some credit rating tips: never close an old account unless you have a very good reason to, and avoid opening too many new accounts if you already have a good average age on your accounts.
There are many other minor details that play their own role in determining your credit worthiness, but it is most efficent to focus on the things that are the most influential and most in your control.
A credit score can be an intimidating thing, but if you consider that it is really just a somewhat simple number that gives lenders an estimate of your trustworthiness, you will begin to realize that your credit rating is something that is ultimately in your own control. Your score will be as good or bad as you make it. - 33385
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When you've already made lots of late payments or you are heavily in debt, your credit rating may already be bad. If that sounds like you, then you should look into a service like eCreditAttorney.com.
