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 score.
Your history of paying your credit cards on time is crucial if you want to have a good credit score. No one likes to part with their hard earned money every month, but the truth is that it is almost impossible to have a good credit score with too many late credit card or loan payments on your record.
Another factor that is almost just as important as paying your credit card bills on time is to be careful to not max out all of your credit cards. The closer you are to your overall maximum credit limit, the more apparent it is that you are having trouble paying off your debts, and your credit score will take a hit as a result.
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 advice: 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.
While I could go on all day about minor issues which have small effects on your credit rating, it's not necessary because I've already covered what are by far the most important factors.
Fortunately, once you understand the factors that play into your credit rating, you become the master of your score and can begin to work on improving it. Avoid activities that negatively impact your credit score, and partake in activites which raise it. It really is that simple! - 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 score.
Your history of paying your credit cards on time is crucial if you want to have a good credit score. No one likes to part with their hard earned money every month, but the truth is that it is almost impossible to have a good credit score with too many late credit card or loan payments on your record.
Another factor that is almost just as important as paying your credit card bills on time is to be careful to not max out all of your credit cards. The closer you are to your overall maximum credit limit, the more apparent it is that you are having trouble paying off your debts, and your credit score will take a hit as a result.
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 advice: 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.
While I could go on all day about minor issues which have small effects on your credit rating, it's not necessary because I've already covered what are by far the most important factors.
Fortunately, once you understand the factors that play into your credit rating, you become the master of your score and can begin to work on improving it. Avoid activities that negatively impact your credit score, and partake in activites which raise it. It really is that simple! - 33385
About the Author:
You may have heard of Lexington Law, a notorious company that claims to increase your credit score by helping you to have negative items removed from your report. Here is my review on this company: Lexington Law Firm Review
