Life’s big purchases, like a house or a brand new CT6 from Ryan Cadillac, typically require a loan. Your ability to get a favorable loan depends on your credit score. But just what determines your credit score? There are quite a few important factors:
- Payment History: How well you have paid past bills and loans is a huge factor. Late payments or accounts that have gone to collections don’t bode well for your score.
- What You Owe: If you currently have other debts, such as credit cards or student loans, the size of those debts plays a part in your credit score. That is why it is a good idea to use only a portion of your credit limit on your credit card and make regular payments (in full, if possible) every month.
- Length of History: Time is an important factor. The longer you have had a good credit reputation, the stronger your score will be.
- New Credit: If you are constantly opening new lines of credit, this will negatively affect your score. Keep your lines of credit in check, never opening more than you need.