Listed below are the financial behaviors and related factors that each contributes to an overall credit score:
- 35 percent - An individual's history of making credit payments on time
- 30 percent - The total amount of debt being carried along with available credit
- 15 percent - The age of an individual's open credit lines (more history is better)
- 10 percent - The frequency with which someone applies for new credit
- 10 percent - Factors such as the types of credit lines
In general, most of the factors that influence credit scores are within the power of consumers to change for the better. All it takes is to consistently make payments on time, not carry too much debt on any one credit card, don't close older accounts unless absolutely necessary and use discretion when applying for new credit.
Comments(2)