What are the MAIN things that go on your credit score?
Mar 13, 2010
in
Mobile Credit Card Processing
Im currently 21 yrs old and am interested in getting my credit score as high as possible so i can buy a house soon. What are the main factors that contribute to your credit score. I had a credit card and am in the process of paying the card off but should i keep it or cancel it, (they charge me about 15 dollars a month even when i dont use it). Also i have a car payment automatically taken out of my checking account, does that help?. And do small bills like tv bill and cell phone bill go on your report?. Is it good to have alot of stuff in your name as long as you pay? Thanks for all answers!
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4 comments
Quizzle on March 13, 2010 at 8:48 pm
Hi Ryan! It’s smart to start working on your credit score now, as boosting it can take time. Here’s the general break-down of what makes up your credit score:
+Payment History: 35 percent
+Amounts Owed: 30 percent
+Length of Credit History: 15 percent
+New Credit: 10 percent
+Types of Credit Used: 10 percent
Simply put, "payment history" is how reliably you pay your bills on time every month. "Amount owed" refers to how much you owe. "Length of credit history" is how long you’ve had credit accounts open. "New credit" pertains to the number of new accounts you’ve opened recently, as well as the number of credit inquiries (credit pulls) made in the recent past. And finally, "types of credit used" is the variety of credit accounts you have open (e.g. credit cards, mortgages, auto loans, student loans).
As far as your personal situation, it sounds like you’re on the right track. Pay off your credit card, but keep it open. Check in with your credit card company after you’ve paid off your balance and ask them if they can waive the fees. If you close the account, you’ll lose the credit history and the amount of credit that is available to you through that card, which will negatively impact your score.
Having an auto loan that you pay on time every month (automatically or not) will help your score. It doesn’t really matter that the payment comes directly from your checking account, other than the fact that having it automatic ensures timely payments. Cable and cell phone bills aren’t typically reported on your credit report, unless of course, you were to allow those bills to become delinquent. However, more and more, utility companies are reporting to the credit bureaus.
Hope that helps! As long as you keep paying your bills on time and only open credit accounts when you need them, you should be in good shape. Good luck!
Gaytheist Buddha on March 13, 2010 at 8:48 pm
Payment history. Never pay late and try to pay more than the minimum amount due.
Avoid using more the 25% of your available credit limit.
You need to get better credit so you can obtain a no-fee credit card.
Clyde on March 13, 2010 at 8:48 pm
I know this: If you click on those web links that are supposed to reveal your credit score– you are damaging that score. If you’re worried enough to click the link, your credit bureau gets worried too. Never show the world that you are worried about your credit score.
Tim on March 13, 2010 at 8:48 pm
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