The Simple Credit Score Breakdown

All the information regarding your credit score on the Internet can be overwhelming. According to a simple Google search, there are 66,500,000 pages on this topic alone. Instead of having to swim through all the articles trying to figure out what hurts credit, and how to improve credit, here is a simple breakdown of how your score is determined:

• 35% Payment history- Not making a payment, or making late payments will severely damage your credit score.

• 30% Total debt owed to available credit ratio- It's good to have at least 75% available credit on all credit cards. Car loans and mortgages are also a factored in you score.

• 15% Length of time establishing credit- Keep established credit cards open with a zero balance, the longer the better.

• 10% Types of credit established- Try to have at least few different credit cards, and maybe a car loan or mortgage.

• 10% Inquiries and New accounts- Running a credit check, and opening new credit cards will temporarily affect you score in a negative way. Running multiple credit checks in a short period of time can be interpreted as one credit check. Checking your own credit does not affect your credit score.
  

These are the factors the determine your credit score and hopefully this article will give you a better understanding of how to maintain your credit.