I just wanted to share with you how credit scores are calculated, I found this information to be informative, you might too.
Here are a few factors that play into calculating your score and tips to improve your credit score:
- 35% of your credit score is derived from your payment history, so always making your payments on time boots your score
- 30% relates to account balances, which have to be at manageable and reasonable amounts
- 15% is the length of relationships with creditors (credit card companies, mortgage companies, auto loan lenders and more)
- 10% is related to credit types because the credit agency likes to see you manage different types of credit such as credit cards, student loans, auto loans, mortgage, ect.
- 10% is about establishing new credit, so it can improve your score to apply for new credit, preferably a type of credit that you may not possess
They suggest obtaining your credit score for free to see what your score is. Once you know your score, you can work on maintaining or improving it by using the factors that influence your score.
For more information and helpful tips go to Quizzle.com
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