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03 Jun 2019   /   0 comments

3 Things That Most Affect Your Credit

Credit has become increasingly important as your credit rating can affect everything from whether you are able to rent an apartment, get a job or take out a loan. Many people are not aware, however, what affects your credit rating. Although there are many variables that can affect your credit, there are three main things that affect your credit.

Length of Credit History

Credit history comprises 15 percent of your credit score. This means that the longer you have had credit, the better your credit score will be. Credit bureaus look at how old your oldest account is, how old your most recent account is and the average age of all accounts. The amount of time since there has been activity on your accounts also impacts your score.

Balances Owed

The balances you owe on your credit accounts comprise 30 percent of your credit score. If you have many different credit accounts with balances, your score will be lower than if you have several accounts with no balances and one or two with balances. Carrying large balances from month-to-month can negatively impact your credit score. Therefore, it is best to keep your credit card usage below 30 percent of the credit you have available. In other words, if your credit card has a credit limit of $1,000, you want your balance to remain below $300.

Payment History

Your payment history makes up 35 percent of your credit score. Making on-time, complete payments is the best way to keep your credit score high and reduce the chance of paying higher interest rates. It is possible to work with credit card companies if you realize you may be late paying your bill, but you should do so as soon as possible to avoid any marks on your credit.

If you are dealing with a low credit score and need emergency cash, contact TFC Title Loans today to see if you qualify for a title loan. All you need is a clean and clear car title along with some identification. You keep your car while you are paying the loan. You can learn more from our frequently asked questions on title loans page, by calling 844-242-3543 or visiting us online at Complete the easy inquiry form or chat with one of our friendly loan officers through the Live Chat to learn more about all your options, including registration loans in Arizona!


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