19/01/2022
The most common factors that affect your credit scores:-
💥 Payment history is the most important ingredient in credit scoring, and even one missed payment can have a negative impact on your score. Lenders want to be sure that you will pay back your debt, and on time, when they are considering you for new credit.
💥 Amounts owed your credit usage, particularly as represented by your credit utilization ratio, is the next most important factor in your credit scores. This ratio looks at how much of your available credit you're utilizing and can give a snapshot of how reliant you are on non-cash funds.
💥 Credit history length the age of your oldest credit account, the age of your newest credit account and the average age of all your accounts. Generally, the longer your credit history, the higher your credit scores.
💥 Credit mix People with top credit scores often carry a diverse portfolio of credit accounts, which might include a car loan, credit card, student loan, mortgage or other credit products. Credit scoring models consider the types of accounts and how many of each you have as an indication of how well you manage a wide range of credit products.
💥 New credit The number of credit accounts you've recently opened, as well as the number of hard inquiries lenders make. Too many accounts or inquiries can indicate increased risk, and as such can hurt your credit score.
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