credit-rating4Factors That Negatively Affect Credit – Part 4

This week we have been looking at factors that negatively affect your credit scores.

Today we will look at your credit history.

Our credit scores are based upon our payment history. If we maintain the proper kind of credit and maintain healthy balances our scores are affected positively. If we open the wrong kind of credit and have high balances it will affect our scores negatively.

If you have no current credit accounts you could end up with no scores at all.

35% of your credit score is based upon your payment history. Creditors report your positive or negative payment history to the credit bureaus. Consumers who take on debt and pay it back on time increase their scores. You can see how important it is to maintain your accounts carefully.

30% of your scores are based upon your outstanding debt as compared to your credit limits. It is best to keep your outstanding debts as low as possible.

15% of your scores are determined by the length of your credit history. Closing old accounts sometimes will hurt your scores.

10% of your score are based on the different types of credit you have. You can hurt your scores without proper guidance.

At HOPE we can help you develop healthy credit habits. Please call us at 704-503-3669 and we will be glad to assist you.