These are the components that make up your credit score. Some carry more weight than others:
- Payment history accounts for 35% of your score. Payment history negative items that count against your score include
- Amounts owed 30%Debt you have as compared to the amount loaned to you.
Anything over 50% will start to impact your credit scoreWe are mainly talking about
Loans with an end date or pay off dateRevolving accounts – no end date and can use the credit over and over
- length of credit history 15%(How long has each account been open)
Account in good standing are those with no late payments. The
longer the credit history the better
- new credit 10%When yu apply for credit (loans,mortages etc) an inquiry
shows on your report. These inquiries stay on ypur credit
report for two years. The first year on your report could
impact lower your credit score.
- types of credit 10%A mix of different types of credit is always best.
Know where you are at – get copy of your credit report and scores. You can get free credit reports from www.annualcreditreport.com