Everyone, who has ever dealt with loans, realizes the value of a credit score. Managing your credit score is essential for a credit application process. Nevertheless, it’s important to understand what affects your credit score.
35% – is affected by payment history. Payment history reflects all your payment operations either skipping them or paying off on time.
30% – depends on current debts. Reaching a credit limit has an impact on credit approval and can decrease your credit score. Make sure you use debt consolidation program to keep your credit score remains perfect.
15% – is defined by credit history – an overall picture of your credit applications and payments. A good credit history increases your chances of getting a loan.
10% – is responsible for the new credit applications. This option shows new accounts, which were made during the short time period. When you urgently apply for new credit or open a new account, you lower your credit score.
10% – reflects the type of current credit. Financial experts consider having different types of a loan (a car credit, a mortgage, a home equity loan) in one credit card more profitable rather than having different credit cards