What affects my credit score?

Several things affect the credit score and many people don’t know what is it that they can do to improve their credit score.

Several things that affect your credit score are late payments, so you got to make sure you pay your bills on time, otherwise they creditor might report it to the bureaus and then it will affect your score.

If you have a collection account that also is not good, and some lenders require that you payoff your collection accounts before allowing you to refinance or purchase a home.

One of the big factors that affect your credit score is the amount of revolving debt that you have, it is better if you keep the amount of your revolving debt below 30%, for example if you have a credit card line of 10,000 and if your revolving debt is 3,000 then you’re pretty much ok, of course if its close to zero is even better, you must definitely try to manage your debt as we have seen many cases where it is incorrectly managed.

 The amount of credit lines that you have also affects your credit score, its good to have some credit cards so that you start building some credit history, some people make the mistake of not having any credit cards, like myself in the previous years I didn’t know if I had no credit card, then I had no history, I was afraid of any interest charge by a credit card companies, so you need to have some credit history, so having a few credit cards is good for your credit (if you pay on time, and your revolving debt is low).

Also, the credit score changes day by day, and we really don’t know when it will change as each creditor reports to the bureau on separate days, so whenever the creditor reports to the bureau then the credit score is updated. 

Tags: Credit_Score

Answered on Saturday, Sep 22 2007 12:37 AM PDT

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