Many consumers have no idea what a credit score is comprised of. What are they measuring and how does this number relate to my creditworthiness? While common sense tells us that paying our bills on time is an important factor what else is central when it comes to credit scores?

A credit score is a statistical rating that takes into consideration certain statistics and compiles that information into a number that represents a consumer’s creditworthiness. The higher the score the better credit risk the consumer is deemed to be. Scores above 700 are thought to be excellent while scores below 600 are inferior.

Opposite to accepted belief, credit scores can change regularly. There are a assortment of factors that are involved in the scoring and these factors vary regularly. You may have always been prompt with your payments yet other factors can take down your credit score. Different types of credit are scored differently and having too many inquiries on your report can also be damaging.

Here are the factors that will affect your credit score. 35% is based upon your punctual payment history. Only payments beyond 30 days late are counted as harmful. 30% is your debt to credit ratio or the quantity of liability you have accrued compared to the amount of credit you have available. 15% is the extent of your credit history. Of course, the longer your account the more to your advantage it is. 10% is the type of credit used. Consumer finance debt is considered to be unhelpful while credit card debt, car loans, and mortgages are more of a positive. 10% is how many new inquiries are on your report. Having too many inquiries is considered harmful.

If you want to boost your credit score, it is valuable to be attentive of these issues and use them to your gain. Make sure that your payments are all made on time and do not charge or use more than 35% or your accessible credit. Stay away from consumer finance companies and department store credit cards and do not let anybody inquire into your credit report unless you absolutely must.

You can boost your credit scores and repair your credit. There are professionals that specialize in credit repair or you can do it yourself but be aware that you have the right to contest negative credit and negative credit scores.

Don’t fight with low credit scores any longer. Get educated and take action to increase your scores and repair your credit.

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