Some important factors for your credit score  

1. Credit scores are comprised of five elements.

The points are awarded for every factor, also grows your credit score. We listed Some important factors for your credit score in order of importance.

a.Payment History – 35% Impact

Paying your credit debts on time also in full has a positive effect on your credit score. Charge-offs, judgments, and Late payments all have a negative impact. Delinquencies, in the last two years, give more importance than older things.

b.Amounts Owed – 30% Impact

This factor considers the ratio between the outstanding balance and available credit. The customers should make try to keep their balances as close to zero as possible. Also, clearly below 30-35% of the available credit limit, at least three months before making a larger purchase.

c.Length of Credit History – 15% Impact

This portion of the credit score reflects the length of time since you had established a particular credit line. A long-term borrower will always be stronger in this area.

d.Types of Credit Used – 10% Impact

A mix of credit cards, mortgages, and car loans are viewed more positively than a collection of debt from credit cards. You should always have two open better credit card accounts.

e. New Credit – 10% Impact

Research shows that opening many credit accounts in a short time serves a higher risk, mainly for people who have not long credit history.

2. People today tend to have more credit and shop for new credit more frequently than ever before.

The FICO® Score reflects this reality. It takes into account several factors.

a.How many new accounts you have

FICO® Score shows the number of your new accounts and the type of them. It also may reflect the number of your new accounts. 

If you have been maintaining credit for a relatively short time, don’t open a lot of new accounts too rapidly. New accounts lower your average account age, which has a more significant impact on your FICO® Score if you don’t have a significant number of older credit accounts. If you are using credit for a long time, so opening a new account can still drop your Score.


This component of the credit score takes into consideration the number of queries made concerning a consumer’s credit within twelve months. 

Each hard inquiry can cost from three to fifteen points on the Score, depending on the number of points the consumer has left in this factor.  

It’s OK to request and check your credit report, since it does not affect your FICO® Score, as long as you order it directly from a credit reporting agency, or by an organization to provide credit reports to customers, such as MyFICO.

An inquiry affects your Score when a prospective lender requests your credit report or Score. Although the FICO® Score only counts inquiries from the last year, inquiries remain on the credit report for two years. The FICO® Score is carefully designed to count only those inquiries that truly impact credit risk since not all inquiries are related to credit risk.

There are three additional, essential facts about inquiries to note, namely that they: (1) usually have a small impact; (2) many types of them are ignored completely; and (3) the Score allows for “rate shopping.”

Other important Items to consider

MYTH:  If I apply for new credit it will affect My FICO® Score  negatively 

TRUTH: If it does, it probably won’t be changed dramatically. If you use for many new credit cards in a short time and make several requests for your credit report will appear in your story. Shopping for new credit can suggest a higher risk; however, most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period. Usually, they are used as a single inquiry also will have little effect on your credit score.

You should keep in mind that all of the various scores will differ from one another because they weigh the data in your credit report differently. Therefore, it’s essential to pay attention to and track the factors influencing your Score, rather than just the three-digit number. Working on improving individual elements should result in improved credit health across the board. Credit Karma provides some different credit scores free of charge. Consequently, there’s no excuse for not determining the up-to-date status of your Score as often as you like.

If you have any other questions about credit, you can reach our specialists by click here.

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