Did You Know There Are 56 Different Credit Score Variants?
These can and do affect your ability to qualify for your next loan. Here are a few tips to help you. Did you know that there are over 56 different software variants used to determine your credit score?
1. 35% of your score is based on timely payments. So, make your payments on time.
2. 30% of your score comes from your Debt-to-Credit Ratio. So spread your balances over several credit cards. The lower the monthly balance the better the score. Keep old cards in good standing, since the total available balance is compared to the amount owed.
3. 15% of your score comes from the age of your accounts, the older the account the higher its value so don’t close older accounts, use them occasionally
4. 10% of your score is made from new credit but opening too many accounts in a short period of time indicates financial trouble and could trigger a decrease in your score.
5. Finally, 10% of your score comes from a mix of instalment debt and revolving debt. In summary: Keep your balances low, keep your payments on time, keep accounts open and have a mix of credit. The highest score you can get is 850.