If you ask the question what affects your credit score definitely you know the importance of credit score. So let’s don’t beat about the bush. There are many factors which are having the ability to affect your credit score. But there is something that will not affect your credit score. Let’s see that in the first place.
What wouldn’t affect your credit score?
- Your bank accounts
You may have opened multiple bank accounts and have transaction in all. It wouldn’t affect your credit score until you bounce checks.
- Utility payments
Utility bill payments and medical bills would not affect your credit score until you missed to pay the bills & in turn they will become collections.
- Insurance payments
- Rent – until it becomes a judgment
What affects your credit score?
Everything that will show up on the credit report will affect your credit score. As you all know your loans and credit card will affect your credit score. There are some banks which will not produce reports to the credit bureaus. If you are in the process of improving your credit by periodical timely payment then these banks will not help you in any way in your mission.
All delayed payments which exceeds above 30 days will affect negatively. In case the late payments are close to 60 days or 90 days it will be very difficult to get recover from it.
Balance amounts that are recorded on your credit report will affect your credit score. If you have a very high balance with regard to your credit limit, it will definitely affect your credit score. When your credit balances exceeds 30% take necessary steps and bring it down.
When you don’t have so many credits appearing on your report, taking the new credit might have an impact on your credit. Let’s say your credit history is very small and you are taking a car loan through the credit card. It will of course lower your credit score. But don’t worry if you make nearly 6 months of on time payments in a row your credit score will start to get improve.
Okay now you may have a question where can I check my credit score for free. This same question is asked by so many people and all end up with the disappointment. Since calculating the credit score follows a sophisticated model no one of the companies are offering at free of cost. But there are 2 smart ways exists to obtain a free credit score. We have dedicated a post to teach this alone. So if you want to know where can I check my credit score for free? Please click on the link how can I check my credit score. You are just a click away.
If you want to estimate credit score on your own following points will be very useful.
Required Information to find out a credit score
You can estimate credit by entering the following requirements in the credit score estimation tools. Irrespective of the types of tools following are some of the basic information.
- Age of your credit account
- Type of your account
- Accurate number on the number of open and resolving accounts
- The details regarding the accounts which are in collections or charged off
- Total credit issues like serious delinquencies , judgments, bankruptcies and other issues.
When you provide all the above information the tool will return you the estimate credit score. If you are interested in how the calculation were made you can take a look on the break down which you can see next to your results.