What Affects Your Credit Score? – Be In the Know


If you are interested in having a great financial future, then it is crucial that you keep your credit score in great shape. If you don’t keep your credit report in good shape, then you will find yourself beating your head against the wall again and again. You may find it difficult to obtain the credit and loans that you need at the times that you need them. When you find a new car that you like, you may not be able to purchase it if the bank turns you down for a loan. When it is time to buy a new house for yourself and for your family, you may not get approval for a large enough loan to buy that particular house. You may have to buy a smaller house with a much smaller loan. Rather than each of your children having a room to his or her self, your children may have to share a room. If you come upon hard times and you need to a credit card to pay off a few of your bills, then you may find it difficult to get approval for such a card. You may have to settle for a card with a lower limit or get used to utilizing a debit card for your purchases. You may find it difficult to pay your bills on time, which may force you to deal with having your utilities shut off from time to time.

On the other hand, if you do keep your credit score in good shape, then you will be able to buy the things that you want and need, and you will be able to live the life that you want. You will easily be able to secure the loan for the car that you have always wanted. You will be able to buy the home that you want with enough space for a large and prosperous family. You will probably even be able to get a house with a yard that is large enough to support a few dogs. You will be able to buy all the televisions and other electronic gadgets that you could ever want. You’ll have no problem paying your bills on time and obtaining access to as many credit cards as you could want. You’ll probably even have enough money and credit left over to take quite a few lavish vacations with your family where you can simply relax and get away from the daily grind of life. In order to maintain a great credit rating so that you can live the life that you want, you need to know the things that most affect your credit score. When you know which items in your financial history affect your credit score, you can begin working on the process of correcting them.

The primary items that affect your credit score are your credit card and your loan history. You want to make sure that you do everything in your power to ensure that you don’t miss payments on these items. If you are more than 30 days late on any of your payments, then your credit score will be negatively affected. Another important factor in regards to your credit score is the percentage of your balance in relation to the total credit that has been extended to you. If your credit limit is $100,000, then you should avoid carrying a balance of more than $25,000 – $35,000. If you carry a balance higher than this percentage, then your credit rating may begin to drop.

The good news is that there are quite a few items that many people worry about which don’t actually affect their credit score. This includes such items as your utility bills and your rental payments. The only time that you will need to worry about these items is if you get so far behind that they are sent to a collection agency.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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