What hurts my credit score?
Six major factors that influence your score are listed beneath your score. They are:
Payment history: Payment history has a high impact on your credit score. It demonstrates your ability to make payments on time and shows how reliable you are when paying back what you owe. This is affected by credit cards, auto loans, and student loans. Make sure to make at least the minimum payments for all your loans on time.
Age of Credit: Age of credit has a high impact on your credit score. It is the average amount of time that you have had all of your open credit accounts and it measures the longevity of your credit history. Try to keep your oldest accounts open and maintain good payment practices.
Utilization: Credit utilization has a high impact on your credit score. It shows how much you spend as a percentage of your total available (credit limit). Higher percentages indicate that you may not have your spending under control and are more likely to default on payments. You should try to be keep utilization under 30%.
Negative Marks: Negative marks have a high impact on your credit score. They are indications of poor credit behavior in the past. They include accounts in collection, lien, and bankruptcies. Negative marks can stay on your credit report for seven years or more.
Credit Inquiries: Credit inquiries have a low impact on your credit score. This counts all of the hard inquiries on your report. A hard inquiries happens when you apply for a credit card, loan, or other form of credit and authorize a lender to pull your credit report so that they may evaluate your credit worthiness.
Total Available Credit: Available credit has a low impact on your credit score. It shows how much total credit you have available to you. Higher numbers indicate that you have more credit available to you and that your utilization is not as high as it could be.