What Score Is a Good Credit Score?
First lets talk about what factors affect your credit rating.
Factors that Effect Your Credit rating
– Payment History (35%)
– Amount Owed (30%)
– Length of Credit History (15%)
– How Much New Credit (10%)
– Type of Credit (10%)
Your payment history is the most important factor when figuring out your credit rating. Things such as your payment history on all accounts, length of your positive history, when the last negative factor took place, bankruptcy and foreclosure fall into this category.
The amount owed is only worth 5% less than payment Vegasgoal history, so it is almost as important. Too many credit accounts, or too high of a ratio between balance and limits can negatively affect this category.
Length of Credit History can be affected by length of time specific accounts have been open, and the duration of time since each account was last used.
How much new credit you are taking on can affect your credit rating. If you are taking on too much credit and overextending yourself, it can lower your score.
The type of credit that you have can affect your score. A healthy mix of installment loans and revolving credit from banks is considered better for your credit score.
Good and Bad Credit Scores
Now that you know what affects your score, we can look at what a good one looks like.
There is not an exact line that says where good credit scores begin. In fact, the same score could get you a good loan one year, but not the next. There is however a general area.