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 the credit approval and can decrease your credit score. Make sure you use debt consolidation program to make sure 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 a new credit or open a new account, you lower your credit score.
10% – reflects the type of the 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