What Affects Your Credit Score?

What affects your credit score?

Have you paid back loans on time or have you made late payments or missed payments? If so, this will reduce your credit score.

Credit Score Inquiries

Checking your credit score or applying for a loan reduces your credit score.

Delinquency

If you’ve defaulted on a loan, your credit score will drop. This can affect your ability to get new loans in the future.

Length of Established Credit

Having a credit card and paying the balance every month will boost your credit score a little bit each year.

Quantity of Credit Already Available

The more you can borrow, the higher your credit score. This can be helpful when opening new accounts such as car lzoans and mortgages.

Composition of Credit

Revolving debt like with credit cards will affect your credit score differently than a loan that you pay back in installments; revolving debt has a much shorter term than installment loans do so its effects are felt more quickly by lenders when determining how much risk they want to take on when giving out loans.

Amount of outstanding loans

If your already have debt, you’re less likely to qualify for more debt.

I hope this was helpful! Please share this post if you think it's something that could be helpful to others.

Contact us at (978) 857-9580 and let us know how we can help you!! Visit our website www.dohertyproperties.com