What personal details do not affect my credit score?
Do you feel like you need an advanced degree to figure out what is affecting your credit score? The good news is you don’t have to worry now because it is very simple. There is a lot of news around about how important a credit score is, and how essential it is to keep it maintained. However, very little is heard about what actually affects your credit score. When you know what affects your credit score, you can work better on that. There are very essential factors that affect your score majorly, and you need to pay an extra amount of attention to it. Not every credit activity has the power or can influence your credit score. There are few things that directly affect your credit score in a good or bad way. So that you maintain a good credit report always, here are some of the factors that directly influence your credit score.
What is a credit score?
A credit score is the most essential eligibility criteria that one needs to meet. It is a three-digit score that represents all the credit activities that have been done by you. All your credit account, payment, credit mix, bills, and loans are taken into consideration and given a score based on that. This score is used by every loan provider to decide the eligibility of an individual. An individual with a good credit score is an asset to the loan provider as there is no risk in offering a personal loan. A good score makes you eligible for easy approval along with perks like a low rate of interest and low charges. Make sure you start working early to maintain a good Experian credit score.
Top credit score affecting factors
Payment history: The most important factor that has a direct influence on your credit score. It takes into account all the payments and transactions that you make. If you have any bills or EMI, the payment will be taken into consideration. If you have any delay in payment, it will have a negative impact on your credit score. The payment history takes all the past history and has all the records of missed, on time, and default payment. This factor plays an important role in maintaining your credit report. Keep your payment on track with on-time payment and check credit score online.
Account owned: This factor takes into consideration all the credit accounts that you have under your name. It means all your bank account, credit cards, and loan that you have taken in your entire lifetime. The accounts you own have a direct impact on your credit health. If you have any default regarding your loan or credit card account, it will negatively impact your credit score.
Credit history: Credit age is a very important factor for credit score. It is always recommended to go for an old credit age by not closing any account even if you do not use it. The more the credit age the better will be the credit score that you have. If your credit has a lot of new accounts and no old credit account, your credit score will suffer.
Credit mix: This is a factor that decides the type of credit account you have. You may have an auto loan, personal loan, or a home loan. Having a good mix of secured and unsecured personal loans can get you a good credit score.
Wrapping up
Check your credit score online and keep yourself updated. The above-mentioned factors are important to influence the Experian credit score.
