Factors That Affect Your Credit Score

Delinquencies:

The first factor are Delinquencies; which is thirty five percent of a consumers overall credit scoring.  There are usually four factors that can affect your credit score.  Let’s review these factors:

35% = Payment History
30% = Amount Owed
15% = Length of Credit History
15% = New Credit
5%   = Inquiries

Having a positive payment history is crucial when establishing a positive credit rating.  A payment history of two years is what affects your credit score the most.  Make on time monthly payments by either enrolling in an automatic withdraw with your creditors, or keeping a calendar as a reminder of when your bills are due.  I always recommend making your monthly payments one day before the actual due date, so that mistakes of payments are not made.  This will not only increase your credit score, but will also show credit reporting agencies and lending institutions that you are responsible with your debts for future investments. 

A late payment will decrease your personal credit score from ten to twenty points off your credit score with each bureau that this debt is reporting too.  Be aware that your credit information may not report with all three bureaus; which are Equifax, Experian and Trans Union.  This is the reason why you will see a difference in your credit scores with each bureau, some higher or some lower.  If you have a history of “late payments”, then be aware that there are a few options that a consumer has in order to remove these negative markings.  Here are a few examples of the following:

The creditor never mailed a billing statement.

The consumer made an on time payment, but the creditor reported it late.

If the account is a “closed account” then the Statue of Limitation applies, and the account should be removed permanently.

Remember, patience and persistence is key when repairing your credit.  In time you will start to see an increase with your credit score.  Every thirty days your credit score will either increase or decrease.  Our goal for you is for your credit score to become excellent, and to be able to achieve your financial goals.  The Credit Repair Center is written by Wanda Acevedo.  For more information please contact Improve Credit, LLC at: Ofc: (704) 877-8739.