Is it possible to figure out your credit score?
There are three main credit score companies in the States. They all use different methods to figure out your credit score. However, there are some things that you can consider to figure out your credit score.
Your credit history makes up about 35% of your credit score. You should be very wary of bills or debts that you have failed to pay. This is because these unpaid bills will last on your credit record for 7 to 10 years.
Another 15% is taken by the length of you credit history. This includes the length of your employment or residence. Generally, the longer your credit history, the better your credit score. This is one of the reasons it is a good idea to establish your credit history early.
30% of your credit score depends on your current debt. If you currently have too many loans, you can be denied another loan. This is why it is important to only apply for loans that you need. You don’t have to buy your new spa filter with a credit card.
How you open or close new accounts is reflected by another 10% of your credit score. Avoid opening too many different types of loans in a short period as it can affect your credit score.
As you can say, your credit score is all about common sense. The longer you have a credit history, the better it is for you. If you only apply for credit that you need, the other issues solve themselves automatically.