There are 5 publicly know factors that effect your credit score.
The largest factor is 35% of your score, your account history or payment history.
Simply put, pay your bills, and on time. Life happens, do what you can, the best you can.
Don't delay admitting you may need help.
The next largest factor is 30% of your score. This is your credit utilization. The amount of available credit divided by the current balance shown on your statement. Credit utilization of 0-7 is going to get you the most points possible. Above 7% you start to loose a few points. Not many. Above 15%, you will start to loose a bit more. It's negligible. A realistic recommendation is to stay below 30%. After that you will notice larger drops in your score. Get above 50%, you need to make some changes. How?
There is the easier said than done method, reduce your balances. Still a no brainer. Not as commonly mentioned, increase your available credit limit. Often easier and quicker to do, as long as your score hasn't started to suffer from high utilization.
Monitor and analyze your credit. Need help, get help.
The remaining factors are two that are 10% each and one that is 15%. Only one of those can be easily manipulated. This has to do with Credit Mix.
Just an idea to consider. If a person was judged and received a score for juggling 1 ball, (credit card) wouldn't it make sense that you would get a higher score for juggling multiple items, and various kinds of items? Credit card(s), auto (installment) loan(s), etc.
What is your mix?
The impact of closing an account, should be given consideration. It may not make a lot of sense, but when you pay off your auto loan, which is often considered ideal, reducing your debt, when actually, you may see a drop in your score. Why? A change in your credit mix. Your juggling skills just became a little less impressive.
Should you purchase or lease? Ever situation is unique. Results will vary.
Lastly, watch your number of credit inquiries. A credit inquiry is reported for 24 months on your reports.
How long does it impact o your score?
Ask a lender what bureau or score they use. Know your score. If you are not above the minimum requirements for the lender, don't authorize an inquiry.
A little knowledge goes a long way.
Credit Repair, it's kinda like auto repair. There are many things we can do on our own, change or even rotate your tires. Maybe install new brakes and rotors. Maybe even add some aftermarket accessories. But if you need a new engine / transmission, alignment, body or paint work for your car, you might need some help. It's okay to admit that, you may need some help.
You may benefit from Credit Repair.
If so, call one of the most recognized names in the industry.
Learn how to establish positive forms of credit, regardless of your score, or your income. It can be done.
Sincerely,
Ext32449
