WHAT IMPACTS YOUR CREDIT SCORE!

Credit Card Utilization

HIGH IMPACT

This refers to how much of your available credit you are using at any given time. It’s

decided by dividing your total credit card balances by your total credit card limits.

Financial experts recommend keeping your overall credit card use under 30%.

Keeping your credit card balances low means you use credit responsibly, and you have

available credit should unexpected emergencies arise.

Payment History

HIGH IMPACT

This is represented as a percentage showing how often you’ve made your payments on

time. Paying your bills on time, or early, shows lenders and creditors that you’re

responsible and reliable. You’ll be seen as more likely to pay back your debts.

Age of Credit History

MEDIUM IMPACT

This is the amount of experience you have when it comes to managing your credit.

While credit management experience isn’t the most important factor, it is something

that is taken into consideration. Closing older accounts can erase years of responsible

credit history and lower your score.

Hard Inquiries

Low IMPACT

Hard credit inquiries usually occur when you apply for a line of credit such as a credit card, loan, mortgage…but can also occur when you fill out a form for an apartment

rental. Many of these forms will show that your credit scores will be checked. If not,

it’s always a good thing to ask so there are no surprises. Hard inquiries can lower your score slightly. If you continue to make your payments on time and continue to keep a low

credit use rate, the impact of that hard inquiry should go away or diminish.

Total Accounts

Low IMPACT

This refers to the number of credit cards and loans, mortgages, and other lines of

credit available to you. Lenders like to see that you have

experience managing your credit in different types of accounts. It shows

them that a variety of lenders trust you with credit.