What Makes Up My Credit Score?
In order to improve your credit score, you should know how your credit score is calculated. This way, you would know what you can do to up your score. Here are 5 basic questions that can affect your credit score.
Are my bills paid on time?
If you answer “yes” to this question, then you would not have a problem about your credit score. But if you pay your bills several days after its past due, aside paying for late fees, it would also affect your credit score negatively.
What is my debt?
Most credit scoring agencies compare your debt to your credit limits. If your balance is somehow close to your credit limit, this would make your credit score negative.
How long is my credit history?
A short credit history is not good. But if you pay your bills on time and pay off your balances, then you could still attain a good credit score.
Did I apply for a new credit recently?
If you applied for more than one credit account in a short period of time, this may not be good for your credit score.
How many credit accounts do I have?
If you have too much finance company accounts at your service or too many credit cards on your wallet, this may affect your credit score badly. But installment loans or credit cards that are paid on time would not hurt.
