credit-3Credit Basics Part 3 Experian offers some very simple but sound advice about credit scores.   This week we will be sharing some of their insights with you. 

Credit score factors

Score factors are the elements from your credit report that drive credit scores. For example, your total debt, types of accounts, number of late payments and age of accounts affect credit scores. Score factors indicate what elements of your credit history most affected the credit score at the time it was calculated.

Score factors are the key to improving credit scores. They tell you what you must address in your credit history to become more creditworthy over time. Score factors are usually consistent from one score to another, so addressing the items identified by the score factors can help you improve other credit scores.

Lenders are required to provide consumers with the most significant score factors when they are declined credit.

Improve your credit score

Get suggestions on how to make your credit score better. Discover what items in your credit report raise and lower your score. Learn the most important contributor to a good credit score.

Some suggestions Scores reflect credit payment patterns over time with more emphasis on recent information. In general, a score may improve, if you:

  • Pay your bills on time. Delinquent payments and collections can have a major negative impact on a score.
  • Keep balances low on credit cards and other "revolving credit." High outstanding debt can affect a score.
  • Apply for and open new credit accounts only as needed. Don't open accounts just to have a better credit mix – it probably won't raise your score.
  • Pay off debt rather than moving it around. Also, don't close unused cards as a short-term strategy to raise your score. Owing the same amount but having fewer open accounts may lower your score.

Review your  credit report regularly so you know what is being reported. It won't affect your score to request and check your own credit report.

You can read more from the Experian website on this information at

Check back tomorrow for more information on credit basics that will help you.

At HOPE we help educate clients every day on how to make wise financial decisions. If you would like to know more please call us at 704-503-3669. Our staff is waiting on your call.