Your Credit Score

How Much Do You Owe? This can make up 30% of your credit file and is known as your debt ratio. This is described by the debt you owe versus your credit limit. For example we could be in possession of a credit card with a spending limit of $500 and you owe $480 this is a very large debt ratio and could have a negative affect.

Definitely if one can reduce their credit card debt to less than 50%, this will positively influence your credit score. Credit bureaus will not differentiate between payers who pay their whole balance or payers who keep their balance below the 50% mark.How Long Have You Had Credit? The longer your credit has been established, the better. Lenders want to see that you consistently over a long period of time pay your bills. This is the third most important factor within your credit report.For a high credit rating don’t close paid off accounts. Credit card accounts you have had for some considerable years, it’s a good idea to, leave the account open.

This for sure will increase your credit history and in turn increase your credit rating.What Type of Debt do you have? Whatever type your debt is, this will be responsible for 10% of your total credit score. The types of debt creditors will look for are as follows: loans, revolving credit & credit cards. The reason lenders score the difference is because loans and credit cards have set monthly payments.If your revolving credit makes up most of your credit report, this will look bad on your report. Creditors know that monthly minimum payments will change every month, dependant on how much you decide you want to spend.Applied Recently For A Credit Card? To keep your score high, the less times you apply for credit the better. This is responsible for 10% of your credit report. The amount of times you have asked for credit will stay on your report for two years. It is advisable to limit applying for credit cards & loans, over an over aging.People shopping around looking for a big purchase like a car, can fall into this trap. You will probably allow a car dealership to run a credit check and run a credit report at each one to see if you’re credit worthy, this will greatly lower you credit score as each credit report is run. Do not let anyone run a report until you are ready to sign on the dotted line.This is how your credit score is figured. We hope, these tips will help you increase your credit score considerably. You would want your score, to be the highest possible. Your total credit score could be anywhere between 300-850. Visit my informational web site Browse additional important content on where to receive the most cost affective credit cards. We all want credit card tips, Our informational site specialises in supplying hintsalong with ideas on choosing the most cost affective credit cards and how to get the least amount exchange