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This factor contributes to 35% of the total score. How regularly and timely you
pay your bills affects your credit score most than any other factor. This signifies
that whether you can be trusted to repay the amount loaned to you or not.
Credit Utilization
This contributes 30% of your score. As per guidelines, an individual should not use
more than 30% of the available credit limit because it is a negative sign for
creditors. Having too much debt can affect your credit score.
This makes up 15% of the score. This includes both the age of your oldest credit
account and an average of all your accounts. The longer your credit history, the
higher your credit score as it shows you have a lot of experience handling credit.
Credit Mix
This makes up 10% of the score. An individual holds a diversified portfolio like
installment loans, mortgages, credit card, etc., this is best for your credit score.
New Credit
This constitutes 10% of your credit score. Too many inquiries, most importantly
within a short span of time can affect your credit score adversely.
An individual who is scoring below 600 is considered to be a relatively high credit
risk for a lender.
With a credit score of less than 750, then there is a need for credit repair services
to help individuals to help your credit score.
To improve your credit score, you can meet the expert of Credit Triangle