Credit CardsSavings and Finance

What Affects Your Credit Score?

Everyone has plenty of reasons to use a credit card; to pay off your phone bill, to keep an account in use for you and a friend, or to improve a score so you can do more with your finance. Going along with that, credit scores are one of the best results of using a credit card. So, using a credit card is often part of daily life, but what kinds of credit can be listed on a credit report? What do they do to your level at the end of a check? Here’s some answers you’ve been looking for.


credit score


You’re Compared Against Others

If you can handle credit better than other people in your area, you’re more likely to find yourself a loan at a local and national rate. Each country has their own average when it comes to FICO, and being on par or above it is what really matters. We’re not going to know how exactly this is calculated, but it’s a trend many checkers boast about.


You Always Need a Few Types of Credit

If you can prove that you have a good history with many different types of credit, people are more likely to lend to you for a variety of reasons, and all at your choosing! Maximizing your credit score is something we’re looking to do for our own reasons, and the best way is to show how responsible you are with the types out there. So what are they?

They can include your mortgage loan and rates, the credit cards you use for retail, and banking cards, and how well you handle your rent. Some can boost your score wildly whilst others are just complementary. On the other hand, it’s not so bad if you can’t handle multiple avenues at once, so don’t panic if you’re thinking that whilst reading this!

Even if you’ve end up going over a limit on a card or two, you can turn to credit card debt consolidation. Using this can be a smart move, as you have all your debt in one place and paid off in installments altogether, making it a lot easier to make your money back. It also shows off your resourcefulness to the people that matter.


It Mainly Depends on Payment History

If you’ve paid your bills when you need to, and haven’t delayed any payments or defaulted on them, you’ve got yourself a good credit score immediately. On the other hand, what you owe when it comes to using a credit card (the money you’ve spent that’s stored on there), factors in the other half of the calculation. All in all, if you’re near your maximum spend amount, you’re considered a risk, and your credit score likes to show this off to lenders.


Your credit score is affected by a lot of factors. It’s not everything, but you’ve got to be quite disciplined with how you use a credit card to make sure you garner a good score when you need to.

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