YOUR CERDIT SCORE!

Managing your credit wisely and meeting your financial obligations on time are what you will get and keep your credit score in tip-top shape!

Here are some of the several factors and the relative impact they have on your credit score…

CREDIT CARD UTILIZATION: HIGH IMAPCT

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

·         It’s determined 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 an emergency arise.

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.

TOTAL ACCOUNTS: LOW IMPACT

·         This refers to the number of credit cards, loans, mortgages, and other lines of credit available to you. Lenders like to see that you have experience managing your credit card in different types of accounts. It shows them that a variety of lenders trust you with credit.

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.

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 will say that your credit score 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 utilization rate, the impact of that hard inquiry should go away or dimmish.

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