Factors Affecting Your Credit Score

As you become older and older, you realize that credit score is one of the most important numbers, which affects your financial life. The more you know about credit scores, the easier it will be for you to have a healthy financial life and thus more opportunities to have loans with the prime rates. The following factors play a major role on your credit score:

  • Repayment history: this factors carries the most weight on your credit score. Experts in the industry say that this factor alone accounts for the 35% of your credit score.
  • Outstanding debt: the next in line comes in your debt. This factor plays 30% of your credit score.
  • Length of the credit history: the longer your credit history is, the better it is. This factor weights about 15%.
  • State of the accounts: the amount of money, you have in your account. This factor is about 10% of the total credit score.
  • Different credit types: the types of loans you have taken out, have an affect on your credit score as well. Whatever it is a secure, unsecured loan or just debt consolidation matter. Finally, the factor has another 10% of the credit score.

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