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How Is Your Credit Is Actually Calculated And How To Improve Your Credit Score
Hi,
How is your Credit Calculated, and How to Improve your Credit Score?
Please look at how different factors can affect your credit score and pro tips on improving it.
➡️ Items that affect your credit score include:
Your payment history (35%) - Pay all your bills on time and for the total monthly amount. You can get your student loans into good standing and lower your monthly payments based on your finances. Monthly payments can be as low as $0, and these $0 payments will still count as a whole, one-time payment.
➡️ The amount of money you owe (30%) - Keep your credit card balance under 30% of your total limit, as this can lower your credit score.
➡️ The length of your credit history (15%) - Lenders look at how long you’ve had a credit history by taking the average age of all your accounts - the longer your record, the better your credit score.
➡️ Types of credit you’ve used (10%) - A diverse mix of credit types, including student loans, credit cards, mortgages, etc., will help improve your credit score.
➡️ Your pursuit of new credit (10%) - Limit the hard inquiries you make. Applying for multiple stores or credit cards will negatively impact your credit score as they pull a tricky question for every application.
How is your Credit Calculated, and How to Improve your Credit Score?
Please look at how different factors can affect your credit score and pro tips on improving it.
➡️ Items that affect your credit score include:
Your payment history (35%) - Pay all your bills on time and for the total monthly amount. You can get your student loans into good standing and lower your monthly payments based on your finances. Monthly payments can be as low as $0, and these $0 payments will still count as a whole, one-time payment.
➡️ The amount of money you owe (30%) - Keep your credit card balance under 30% of your total limit, as this can lower your credit score.
➡️ The length of your credit history (15%) - Lenders look at how long you’ve had a credit history by taking the average age of all your accounts - the longer your record, the better your credit score.
➡️ Types of credit you’ve used (10%) - A diverse mix of credit types, including student loans, credit cards, mortgages, etc., will help improve your credit score.
➡️ Your pursuit of new credit (10%) - Limit the hard inquiries you make. Applying for multiple stores or credit cards will negatively impact your credit score as they pull a tricky question for every application.