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5 Biggest Factors That Affect Your Credit Score

· Credit Score

The credit score is one of those aspects in your life which can affect you personally in your life now as well as in the future. It is imperative to build your credit as your score is going to determine a lot of things about you in the future. It will also help the lenders decide whether or not to approve your request for a credit card or loan. Some employers check your credit history to offer you a job, a raise or a promotion.

It is very important to improve your credit score if it is bad, poor, or below average. Here are five biggest factors which are affecting your credit score:

The History Of Your Bill Payments:

35% of your credit score is based on the history of your paying the bills. If you are not paying your bills on time, it can affect your credit score. You will not get approved for anything that needs a good credit score. Your credit score will be harmed from payment issues like bankruptcy, tax liens, collections or closing of an account or credit card. Bear in mind to keep your payment history clean so your credit score does not get affected.

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Credit Inquiry:

Every time you are making an application which requires a credit check, it will be shown in your credit report. 10 % of your credit score is made from the inquiries. You won’t be affected by two or more credit inquiries, but if the number is more within a short period, it can cost you many points off your credit score.


To keep the credit score intent, you need to keep a check on the inquiries that are being made.

Types Of Credit Shown On The Report:

There are two types of credit accounts that exist namely account and installment loans. For your credit score, it is better, that you have both types of accounts on your credit report. It tells that you have experience in taking care of various types of credits.

If you have loans for the assets that you might have purchased like home or car, or a study loan is far much better. It is very important that some experience is shown in your report for credit approval.

Credit History Age:

Up to 15% of your credit score gets affected based on the fact how old is your credit account. If you have an older credit age, it is better as it shows that you have a lot of experience in handling the credit. If you open new accounts and closing the old ones, can also lower your credit score. So never open various accounts at once.

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The Level Of Debt:

Up to 30% of the credit score is determined by how much debt is on you. FICO takes a keen look at the factors related to your debt. It is important that you keep your credit card balances at 30% or less, and spend up to 30% of the card’s limit.

If you have a high balance or you are under too much debt, it can affect your credit score heavily. But if you are paying your balances, your credit score will improve.

If you are looking for more tips on credit score, you can visit Reliant Credit Repair and get more knowledge on credit scores.

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