How is my credit score is calculated?
The information from your credit report that affects your credit score includes:
- Payment history (on-time or late payments)
- Outstanding balances (amount of credit used)
- Length of credit history
- Applications for new credit accounts
- Types of credit accounts (mortgages, car loans, credit cards) Often refered to as your credit mix.
Heres more info on how your credit score is measured.
How can I increase my credit score?
Your credit score is impacted by your credit history. To improve your score, consider the following:
- Paying all bills and loans on time
- Keep your credit usage on credit cards under 30%. It is recommended by experts to ensure that your credit utilization does not exceed 30% of your overall credit limit.
- The length of your credit history is a big factor in a good credit score.
- Keep an eye on your credit report and make sure your report doesn’t contain any errors. If you find erros on your report, consider a diy credit repair to remove inaccuracies.
- Identity monitoring is very important as your credit grows. No one wants the idenity of someone with bad credit, but good credit is often looked for by predators.