There are five major factors that affect the rating of your credit score. It’s important to take a look at all areas that make up this credit scale so that the maximum impact possible can be had in raising the score.

One’s history of payment = 35%

Payment history is the single largest area that impacts your credit score. A single late payment will give you a ding. Multiple late payments will have a larger impact, as will how late the payment was. A ninety day late payment is, of course, going to have a much more negative impact than a thirty day one. It’s very important to make sure bills are paid on time when you are trying to raise your credit score.

The amount owed = 30%

Money you owe on your credit cards is another major factor in determining your credit score. If your credit cards are almost maxed out, then it’s going to make lenders wary of extending you any more credit. The smaller the amount used the better. It’s important not to always carry a zero balance though because creditors want to see that you are able to handle debt.

How long you have had credit = 15%

The more years one has been using their credit cards responsibly, the more it is going to positively impact one’s rating.

If you have recently filed for new credit = 10%

Usually a customer doesn’t go out and sign up for multiple new cards all at once unless they are anticipating having cash flow problems. This sets off red flags with lenders and creditors.

The mix of debt types = 10%

Debt types is a fairly small indicator of overall credit ranking, but it shouldn’t be totally ignored. Store credit, traditional credit cards, home loans, and installment loans all show that a customer is responsible with any types of debt that they may incur.

Now that the above is known one can put measured focus on the areas that are easiest for them to improve upon when looking to increase the scores on their credit reports. If you have any questions re how best to improve your credit score, Vivix Credit Solutions offers a free in-office consultation where one of their financial experts will review your information and help you decide what course of action is needed to provide you with a strong credit score.