If you've ever wondered what exact factors go into determining your credit score, then you're in luck because I'm going to reveal those factors to you in this article.
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 bills improve your credit? 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.
After paying your credit card payments on time, the best thing you can do for your credit score is to try and keep your balances on your credit cards as low as possible. Think about it; would you want to loan additional money to a friend who was already up to his ears in debt? Neither would your lenders.
The length of time that you've had your credit accounts open is a third factor. While not as important as the previous two things that we discussed, the average age of your credit accounts continues to be an extremely important part of determining your overall credit score.
Those three factors are not the only things that will determine your credit rating, but from my experience those three things are all you need to focus on if you want to establish a healthy credit profile.
Fortunately, once you understand the factors that play into your credit rating, you become the master of your score and can begin to work on improving it. Avoid activities that negatively impact your credit score, and partake in activites which raise it. It really is that simple! - 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 bills improve your credit? 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.
After paying your credit card payments on time, the best thing you can do for your credit score is to try and keep your balances on your credit cards as low as possible. Think about it; would you want to loan additional money to a friend who was already up to his ears in debt? Neither would your lenders.
The length of time that you've had your credit accounts open is a third factor. While not as important as the previous two things that we discussed, the average age of your credit accounts continues to be an extremely important part of determining your overall credit score.
Those three factors are not the only things that will determine your credit rating, but from my experience those three things are all you need to focus on if you want to establish a healthy credit profile.
Fortunately, once you understand the factors that play into your credit rating, you become the master of your score and can begin to work on improving it. Avoid activities that negatively impact your credit score, and partake in activites which raise it. It really is that simple! - 31387
About the Author:
You may have heard of Lexington Law, a notorious company that claims to increase your credit score by helping you to have negative items removed from your report. Here is my review on this company: Lexington Law Reviews
