Factors that Impact your Score and How You Can Improve it

Are you creditworthy? One way you to find out is through your credit score. The Fair Isaac Corporation developed metrics for the three-digit FICO score that falls anywhere between 300 and 850. Low scores do not sit well with lenders as it increases their risk. It is easy to find reliable credit repair programs that could help improve your credit score. The easiest and best way to improve your credit score is not to stay away from loans and debt, but to pay back owed money on time.

Before improving it, you need to understand what influences your credit score and how. From payment history to recent activity on your credit cards, different factors can determine if your score is high or low. Here are five to consider;

Payment History
Do you make payments on time? Do you miss any payments? How often? How long do you go past the deadline before paying your bills? These are some of the questions that determine your credit history; a factor that accounts for 35 percent of your credit score. If the proportion of timely payments exceeds that of missed payments, your credit score will go up. If not, your score goes down.

Loans and Credit Card Debt
Do you have any loans or credit card debt? The amount you owe contributes to your score by 30 percent. Maxing out your credit card, therefore, lowers your score. This also considers the number and type of accounts you have. If the proportion of the money you owe is more than your credit, your score goes down. If you have small balances and pay them on time, it will raise your score, but higher balances may keep the score down for a while.

It is possible for your score to temporarily drop after you take a new loan, but if you show a successful and consistent payment history, the score will increase.

Length of Credit History
To earn 15 percent of your score, you need to keep your history clean. Make timely payments and give lenders a history they can bet on. Having a good credit card history does not mean avoiding debt altogether. In fact, you need to apply for credit and carry debt if you hope to build a high score from your credit history.

Recent Credit Activity
Opening up new accounts, or even applying to open one can lower your score. To get the full 10 percent of your score, you need to have maintained the same credit cards and made prompt payments on them. Over time, it will help your score if you keep struggling to pay the same loans rather than taking up new accounts. The latter is a sign of financial trouble.

Don’t forget to try some reliable credit repair programs if you need help improving your score. Otherwise, use your credit cards and loans responsibly as it will invite more lenders that are willing to give you credit at competitive rates. Your credit card history tells if you can responsibly deal with credit so keep it prompt, consistent, and debt free.

If you are looking for Texas Best Credit Repair Service, the author of this article suggests US Best Credit Solutions.

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