Credit experts reveal shocking factors that impact your credit score

A credit score ranges from 300 – 850. This score is used to understand the risk profile of the borrower. In other words, through credit score, the lender tries to judge how likely the borrower is going to repay his outstanding debt. Many people find that it is difficult to maintain a good credit score. 

We have listed down 5 factors that severely affect credit scores. If you can manage these factors, then you will see an improvement in your credit score.  

Outstanding Debt and Liabilities

Payment History

Experts indicate that your payment history can affect your score by a staggering 35%. If you’ve made your payments on time and have avoided any penalties, you’re in the green zone. However, if you’ve missed payments or have been charged with penalties, your score is going to suffer a lot. 

Unborrowed Credit & Credit Mix

The higher the unborrowed credit, the higher your score will be. If you have low unborrowed credit, then you have two options. Either you can start repaying the credit or you can increase your credit limit. Either of these actions will result in an improvement in the credit score. 

People having only one type of credit or the ones that have no credit cards are viewed as high-risk individuals. They often find it difficult to get approvals for new credits. 

Payment Default

factors that impact your credit score and to fix it

History of Credit

Your credit history contributes to as much as 15% of your overall score. If you have a long history of credit, it is going to be in your favor. It basically exhibits that you have experience handling credit. However, if you have borrowed a lot in a short amount of time, your credit score is going to be low. 

For every reporting period, your financial situation is going to be different. Consequently, your credit score is also going to vary. Despite making payments on time, you might have noticed your credit score is declining and you want urgent approval for something that requires a better credit score than yours. 

A good credit repair company such as Credit Repair Today will help you by considerably improving your credit score. They have industry accreditations as well as a team of experts who will advise the best course of action for improving your case. They offer a free credit analysis, comprehensive service plans, and a money-back guarantee!