What factors go into a Credit Score?

Your credit score is used by lenders to assess your creditworthiness. A higher credit score indicates that you have a higher chance of securing a loan. How does your credit score work? A credit score is determined based on a series of factors. Your credit score is calculated using information from the following sources: Payment History Credit inquiries and how long it takes to answer inquiries Length of credit history Type of credit and outstanding balances New credit (within last 6 months) New credit lines (in the last 3 months) Average payment history The higher your credit score, the lower your interest rate. Does credit scoring matter to me? Yes, it does.

What is affecting my Credit Score?

All three major credit reporting agencies provide credit reports to individuals and businesses. Equifax and Transunion report data regarding credit history to businesses so they can make informed decisions on credit application decisions. Each credit reporting agency has its own credit scoring system. All three use a similar scoring methodology. As a consumer, several factors influence your credit score. Here is a brief summary of some of the most important. Poverty A person's credit score is impacted by whether or not he or she is considered to be poor. This includes individuals who fall below the poverty level. Those with no income are considered poor. However, people have other sources of income.

8 ways to fix your personal credit

With more than 11 billion credit accounts in the U.S. and about $1.3 trillion in outstanding debt, people have a lot of credit available to them. However, that doesn’t necessarily mean that consumers can use it to their benefit. Credit Card Regulations Credit card companies typically require that cardholders pay their bills in full each month in exchange for credit limits, credit insurance, and rewards. These requirements and rewards increase a cardholder’s credit score. Credit history Of all your financials, your credit history has the most impact on your credit score. Only those with a long credit history have a good credit score.