Elements that make up your credit score.
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Hello, dear reader friend. Surely you are here again looking for quality information to help you understand and solve everything related to your credit, aren’t you?
Luckily you are here! Below you are going to find out what are the elements or parts that make up the exact credit history score. Read on…
But, before I show you these elements, I want to remind you what we have already seen in our previous blogs, these numbers have the same purpose, to determine that you are a responsible person.
Keep in mind that this is just an example of the factors that go into credit scores and, of course, can vary.
-35% Payment history
-30% Amounts owed
-15% Length of credit history
-New credit
-Types of credit used
35% of your credit score is based on your payment history, which plays a very important role in your credit score, it is what shows that you are a financially responsible person and that you are going to perform at your best.
The 30% as it says, refers to your current debts, the second most important factor, it shows the credit ratio you use and makes a comparison with the amount of money you owe and the amount of credit available to you.
The other 15% factor that goes into calculating your credit score is your credit history. It shows how long you have been using some type of credit, how old your accounts are, and how many years you have had these obligations.
The 10% reflects new credit applications, although new credit applications only take up a small percentage, they should be taken into account. Your credit score is also affected by the number of new accounts you have recently applied for and the most recent date you opened a new account.
The other 10% reflects your current types of credit. The last factor considered in developing a credit score is your current credit. This provides information about the types of credit you have, such as mortgages, credit cards, store accounts or installment loans.
“Remember, it’s never too late to start over and your credit is no exception. Right here on our website you can find the solution to that.”
