What Affects Your Credit Score

It’s hard for us to know exactly how our credit score is calculated.  However, we can get a pretty good idea of what it’s affect by.

MSN Money does a great job of summing up the 5 things that affect your credit.  In short, the 5 things are:

1.  Payment History – pay your bills on time!

2.  Debt – don’t have too much debt, especially credit card debt

3.  Length of Credit History – the only thing that can help this category is time (managing your credit well over time)

4.  New Credit – don’t open too many new credit lines in a short span of time (like applying for multiple credit cards in the same year)

5.  Credit Mix – the more diversified your debt, the better.  Having a combination of mortgage, student loans and credit card debt is better than having all your debt be from credit cards.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s