5 Factors That Determine Your Credit Score

5 Factors That Determine Your Credit Score

 Payment History 35%

PAYMENT HISTORY-35%

When and how you pay is the single most important of your credit. According to FICO, past long-term behavior is used to forecast future long-term behavior.

Credit Utilization 30%

CREDIT UTILIZATION-30%

Those who are always maxing out credit cards, or who get very close to their credit limits, are viewed as irresponsible and will pay for it.

Credit Longevity 15%

CREDIT LONGEVITY-15%

The longer your credit history, the more information for creditors and offers a better picture of long-term financial behavior.

New Credit 10%

NEW CREDIT-10%

Avoid opening too many new credit lines. Practicing such behavior could suggest that you’re having problems financially and are in need of credit.

Credit Mix 10%

CREDIT MIX-10%

Having diversified sources of credit shows that you can handle all sorts of credit, which represents less risk for lenders.

Why Knowing These Factors Matter?

Leave a Comment