5 Factors ThatAffect YourCredit Score
An individual’s creditscore reflects theirtrustworthiness when itcomes to repaying a loan. + + +
If you are opting for a loan, alender will look at your creditscore before deciding whetheryou are eligible and what theinterest rate will be.
A higher credit score willhelp individuals assurelenders of their capabilityto pay back the money.
There are severalfactors which affect aperson’s credit score.
Payments history: Your ability torepay debts is the biggest factorthat affects your credit score. If youare late in making payments or missout on them, your credit score willbe ne
Credit history: This factorsin how long your creditaccounts have been open,and how long it has beensince you used each account.Every time you open a newaccount, your credit scoreg
Types of credit in use: Whiledetermining your credit score, thetypes of credit you have are considered.Maintaining a diverse set of creditaccounts responsibly will result in ahig
Amount owed: Lenders take intoaccount your credit utilisationratio compared to the credit limitsavailable to you. The higher thecredit utilisation ratio, the lesserconfident your
New credit: Lenders look at thenumber of credit accounts you haveand the last time you opened anaccount. Each time you apply for aloan or credit card, lenders take ahard inquiry o
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