What affects your credit score?
There are several factors that can affect your credit score. These include:
Payment history: Your credit score is heavily influenced by your payment history, which is a record of whether you have paid your bills on time. Late or missed payments can have a negative impact on your credit score.
Credit utilization: Credit utilization is the amount of credit you are using compared to your credit limit. It is generally recommended to keep your credit utilization below 70%. High credit utilization can have a negative impact on your credit score.
Length of credit history: The longer you have had credit accounts, the better it is for your credit score. This is because a long credit history demonstrates that you have a track record of managing credit responsibly.
Credit mix: Having a mix of different types of credit accounts, such as a mortgage, a car loan, and a credit card, can be beneficial for your credit score.
New credit: Opening several new credit accounts in a short period of time can have a negative impact on your credit score, as it can be seen as a sign of financial instability.
It's important to note that these are just a few of the factors that can affect your credit score. It's a good idea to review your credit report regularly to get a better understanding of what is impacting your credit score.
-Cardon Real Estate
