There is so much information on credit scores and credit repair online that you can literally get a different answer every time you log on. To get the full impact of a credit score, you have to go to the source; the three credit reporting agencies: Experian, TransUnion and Equifax.
Here is a simple breakdown for you with information from the three bureaus. This should help you understand why your score is where it is and hopefully give you an idea on what you can do to make it better.
The major factors of a credit score include:
Payment history 35% - This consists of your on time payments, late payments, and delinquent payments made on each account reported.
Credit utilization ratio 30% - This is basically a snapshot of your credit. Your amount of credit used is divided by total amount of credit, using only your revolving credit accounts.
Credit length 15% – The amount of time you’ve held your longest open credit account can make an impact on your score.
Recent searches for credit 10% - The amount of inquiries you’ve made recently for new credit accounts. However, checking your own score does not count against you in this category.
Other factors 10% - This consists mainly of the variation in the types of credit you’ve used, for example installment or revolving credit. Credit agencies like diversification on credit reports.
Now that you have a better understanding of what your score consists of, you can take the necessary steps to keep your credit score at it’s best. If you would like any further information or need help repairing your credit, feel free to email me at kim@kimshuford.com.
Have a blessed day!
Kim Shuford
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Thank you for the credit information. You’re right, there seems to be a different answer everywhere you turn! You put it very simply and much easier to understand! Thanks again!