Here are 5 major factors that could hurt your score:
- 35% of the score depends on payment history, taking into account late payments. (One late pay could cost you 75 to 100 points). It is important to pay your bills on time.
- 30% depends on how much debt you have. Your score may be lower if you owe more than one-third of your available credit. (Always keep your revolving credit paid under 30% of the available credit, anything over that will drag your score down).
- 15% depends on credit history. The longer your credit history is better. Hint: DO NOT close your oldest account or try to open multiple accounts at the same time, or your score is likely to drop.
- 10% considers how you handle a variety of debt, from student loans to mortgages to credit cards. (Don’t focus on just one type of credit, meaning installment or revolving. Try to have at least 2 revolving credit cards and one installment loan, like a student, auto or home loan).
- 10% views your newest credit. If you apply for a number of new cards or loans in a matter of weeks or days, your score may drop. Hint: You want no more than 5 to 7 inquires in a 12 month period.
Follow these easy steps to a better credit score.
My Best,
Sarah Kahley-Rufo
A+ Credit Consulting LLC.
303-778-7782
skrufo@apluscredit.info
