FACTORS THAT AFFECT CREDIT SCORE

Payment History- 35%

It is recorded on your credit report each time you are 30/60/90 days on any of your credit obligations.

The more recent the late payment, the more of an impact it has on your credit score. Even if you are late on a $5 payment your score will be affected. If you do end up being late, catch up.

Amounts Owed- 30%

Consumers never want to appear as if they are overextended.
Aim to have a balance of less than 50% of the limit on all of your revolving accounts. Concentrate on paying down the balances each month. If you only pay the minimum payment required each month, a $3,000 credit card debt can take up to 20 years to pay off.

Length of Credit History- 15%

The longer an account is opened and in good standing with a particular creditor, the better. Avoid transferring balances too often because this will eliminate these relationships. It is important to establish a good history with our creditors.

New Credit- 10%

When applying or refinancing, keep all applications within 30 days of each other.
When you request a credit report yourself it will not affect your credit score.
Credit can be reestablished by opening new accounts and paying them on time.

Types of Credit Used- 10%

Diversify by having revolving accounts, installment accounts, merchant accounts.
Limit applications for new accounts, having 3-5 credit cards is sufficient.

TIPS TO IMPROVE YOUR CREDIT SCORE

Pay down your debts to below 50% of the credit limit. – If you have a $ 1,000 dollar credit limit on a credit card try to keep the balance below $500.

Make Payments on Time even after late pays.- A $10 late payment reported to the credit agencies, can pull your credit score down as drastically as a $200 payment. If you have been late get caught up. The further away from the late payments you are, the higher your score will get. Your score can be 550 today, because of a recent car late and increase within months if you get caught up and pay on time.