Everybody should memorize a variety of different numbers in their life. There is your phone number, your social security number, and finally your credit score! While many people know their credit score by heart, they are more in the dark about what exactly determines that credit score. Our financial staff at Mountaineer Mitsubishi has decided to shine some light on the matter of what determines your credit score.
1. Payment History
The most important factor in determining what your credit score is would have to be your payment history. This will include any information on late payments you have made.
2. Amounts Owed
If you still have some late payments to make, then this is a factor that will affect the amount that you owe. It will also affect your credit score!
3. Length of Credit History
The amount of time that you have been using your credit is known as your credit history, and it is a vital factor in determining credit score.
4. New Credit
Starting up new credit accounts will affect your credit score as well. Open too many new accounts at once and you can significantly lower your score!
5. Types of Credit
The final major factor in determining your credit score is the types of credit accounts that you currently have open to make payments with.
Now that you know how your credit score is calculated, you can better seal the financial deal here at Mountaineer Mitsubishi!