For a lot of consumers their credit report is an unknown. They don’t actually know what’s looked at to determine a credit score and how it allegedly measures creditworthiness. Obviously, everyone knows that it is essential to pay for bills on time but how many other factors come into play with a credit score?

A credit score compiles certain statistics and rates them in a numerical scale. The figure is aimed to represent the consumer’s creditworthiness. The higher the score the better credit risk. Scores that are lower than 600 are disfavored and scores more than 700 are thought to be excellent.

Credit scores are based on a range of factors and these factors can adjust often. You may have a low credit rating but have never been late on a payment. Other factors can influence your score and bring it down. Several types of credit are looked upon more confidently than others and for those who have too many credit inquiries on your account that will also influence you negatively.

Let us discuss the factors that will shape your credit score. 35% is based upon your prompt payment history. Only payments past 30 days late are counted as harmful. 30% is your debt to credit ratio or the amount of money owing you have accrued compared to the amount of credit you have on hand. 15% is the duration of your credit history. Certainly, the longer your history the more helpful it is. 10% is the type of credit used. Consumer finance debt is considered to be unhelpful while credit card debt, car loans, and mortgages are more of a positive. 10% is how many recent inquiries are on your report. Having too many inquiries is considered negative.

Being attentive of these factors is the initial step in improving your credit score. Use this data to your benefit. Make your payments promptly and never charge more than 35% of your available credit. Ensure you always keep at least 65% of your accessible credit on hand. Avoid department store credit and consumer finance credit and make sure that you are leery about letting anyone check your credit. Never get your credit checked if you don’t have to.

You can improve your credit scores and repair your credit. There are professionals that are skilled in credit repair or it can be done your self but remember that you have the right to question bad credit and poor credit scores. Get knowledgeable and educated about your rights and what is on your report. You don’t have to bear with low credit scores when you know how to repair your credit.

It can be highly unlikely that you will not have a credit problem or two in your life time. For more information on credit card repair visit us at our blog!