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801 W Avenue N San Angelo, TX 76903 Toll Free: (866) 220-5346 / Local: (325) 655-5631
A lot of different factors have an impact on your credit score, the three-digit number that is used by financial institutions to determine your “creditworthiness.” This can be the deciding factor in whether or not you get approved for an auto loan. But what are the top five things you have to worry about when it comes to your credit score?
Payment History: Estimated to count for about 35% of your credit score, your payment history involves things like paying your bills on time, how tardy any late payments were, and whether or not you have things in your credit history like bankruptcies.
Amount Owed: Owing a little bit in debt is better than owing none at all because it allows banks to see how you handle your money, but be wary of owing too much.
Length of Credit History: How long have you had credit? If you’ve just opened your first credit account, you’re more unpredictable than a seasoned veteran.
New Credit: If you’ve applied for a lot of new credit recently, this can have an impact on your credit score because many people open a lot of credit accounts when they are having cash flow problems.
Types of Credit: It’s better to have different types of credit in use, like different credit cards, mortgages, and installment loans. This demonstrates how well you handle having multiple types of credit.
For more information about finance and your credit score, feel free to contact or visit the Finance Department at Randall Mitsubishiin San Angelo, TX.