February 27, 2021


Your credit score is a potent number that can impact your life now and for the future, in ways, you might not think. Your score determines the interest rates that you pay for loans and credit cards and helps lenders decide if you are even authorized first of all for those loans and credit cards.

It’s more important than ever to protect and build your credit, and how you handle the following five factors can make the difference in determining your credit score.


  • Debt payment history.

Debt payment on time and in full has the biggest positive impact on your credit score. Late payments, judgments, and accusations have all a detrimental effect. Missing a high payment will have a much more severe impact than missing a low payment, and bad debts occurring over the last two years will hold more weight than older items.

  •  Outstanding Credit Balances 30% Impact.

This factor marks the ratio of the remaining balance to the credit available. Ideally, when attempting to purchase a home, you should attempt to maintain equilibrium as close to zero as possible, and certainly below 30 percent of the available credit limit.

  •  Credit History has about a 15 percent impact.

This portion of the credit score implies a period of time since the establishment of a specific credit line. In this area, a seasoned debtor will be ever stronger.

  • Type of Credit 10% Impact

A mix of auto, credit, and mortgage loans is more positive than just a concentration of credit card debt.

  •  Inquiries 10% Impact

This credit score percentage takes into account the number of inquiries that were made on a consumer credit within a six-month period. Every hard inquiry on a credit score can cost from two to 25 points, but the largest amount of inquiries that will lower the score is ten. In other words, 11 or more inquiries will have no further effect on the debtor credit score within a six-month period.

Note that if you run yourself a credit report it will have no effect on your score.