What Determines Your Credit Score

Credit - Car sale

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.

Have more questions about credit scores and loans? Contact our finance department at Ryan Cadillac today.

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