There are three major things that have an extremely pronounced effect on your credit rating. Want to know what they are? Keep reading, because I'm going to lift up the curtains and tell you exactly what you need to know.
Many people are completely stumped when it comes to their credit rating. That's a bit sad, considering how important this number is in our society. Do you wonder the answer to simple questions such as can paying your improve your credit rating? Paying regular household bills such as your electricity does not build your credit, but paying your credit card bills certainly does.
First of all, your payment history has a large effect on your credit score that is not to be understated. Even an occasional late payment on your credit report can have harsh consequences for your credit rating, while you will be rewarded for maintaining a healthy history with your payments.
Another factor that is almost just as important as paying your credit card bills on time is to be careful to not max out all of your credit cards. The closer you are to your overall maximum credit limit, the more apparent it is that you are having trouble paying off your debts, and your credit score will take a hit as a result.
Finally, the overall age of your credit history is an extremely important factor in determining your credit score. This is not something that many people consider, but it is a very real factor that says a lot to lenders about how accurate your credit report actually is.
While I could go on all day about minor issues which have small effects on your credit rating, it's not necessary because I've already covered what are by far the most important factors.
A credit score can be an intimidating thing, but if you consider that it is really just a somewhat simple number that gives lenders an estimate of your trustworthiness, you will begin to realize that your credit rating is something that is ultimately in your own control. Your score will be as good or bad as you make it. - 31387
Many people are completely stumped when it comes to their credit rating. That's a bit sad, considering how important this number is in our society. Do you wonder the answer to simple questions such as can paying your improve your credit rating? Paying regular household bills such as your electricity does not build your credit, but paying your credit card bills certainly does.
First of all, your payment history has a large effect on your credit score that is not to be understated. Even an occasional late payment on your credit report can have harsh consequences for your credit rating, while you will be rewarded for maintaining a healthy history with your payments.
Another factor that is almost just as important as paying your credit card bills on time is to be careful to not max out all of your credit cards. The closer you are to your overall maximum credit limit, the more apparent it is that you are having trouble paying off your debts, and your credit score will take a hit as a result.
Finally, the overall age of your credit history is an extremely important factor in determining your credit score. This is not something that many people consider, but it is a very real factor that says a lot to lenders about how accurate your credit report actually is.
While I could go on all day about minor issues which have small effects on your credit rating, it's not necessary because I've already covered what are by far the most important factors.
A credit score can be an intimidating thing, but if you consider that it is really just a somewhat simple number that gives lenders an estimate of your trustworthiness, you will begin to realize that your credit rating is something that is ultimately in your own control. Your score will be as good or bad as you make it. - 31387
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