1. If you have a bankruptcy on your credit report. You can lessen the impact of the bankruptcy by managing credit responsibly going forward. "Responsibly" means paying your bills on time each month, and making sure the amount you borrow is manageable.
Lenders generally view a bankruptcy on your record as a very strong indicator that you may not be able to pay them back. Bankruptcies because large score drops and can take a long time to recover from. The impact on your score will diminish over time when you demonstrate responsible credit usage.
2. Lenders frequently like to see a lot of experience with credit, both in terms of the number of accounts you have and the length of time you've had them. There's room for improvement in one or both areas.
If you haven't had credit for that long, continue to make all your payments on time and only use as much credit as you need to. Eventually, you'll get to the point when this won't hold your score back anymore.
If you don't have many (or any) credit accounts — opening accounts is a big decision with many factors to consider. Do not open a new account until you are ready.
Over time, as you open accounts when you need them, make sure that you can manage all of them responsibly. Eventually, you'll build enough experience, and this won't hold your score back anymore.
Lenders generally like to see a long track record of responsible credit behavior, like paying bills on time each month. It tells them that you're reliable and can manage credit well.
3. Compared to general credit profiles, using a lot of the credit available to you will affect your score.
If it's possible, try to reduce how much you owe by paying as much as you can each month. For credit accounts, using less than 30% of your available credit is a good goal.
If you don't have much credit available, a lender might see this as a sign that you're stretched too thin financially and might not be able to pay them back.
4. Your oldest account isn't old enough compared to other people with similar credit profiles.
There isn't a quick fix for this issue. The best thing you can do is continue to manage this account responsibly by paying it on time each month and keeping your balance as low as possible.
Older accounts on your credit report help show lenders that you have experience managing credit. Lenders generally like to see a longer track record of responsible credit behavior, like paying on time each month. It tells them that you're reliable and can manage credit well, which can really help your credit score.
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