According to the Federal Reserve, here are the 5 commonly used factors that can affect your credit score.
1. Payment History If you are ever late in payment, referred to a collection agency, or claimed bankruptcy, it’s tracked as part of your history on your credit report. Key takeaway, pay your bills on time!
2. Debt Use Several credit scoring formulas compare the amount of debt you have and its closeness to your credit limits. A lot of outstanding debt could negatively affect your credit score.
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3. Average Age of Credit Accounts Short credit histories may be deemed as red flags for credit scoring. To help combat this, make sure to have timely payments, maintain low balances, and keep any old credit accounts open.
4. Mix of Accounts Many credit scoring formulas look into the type and number of credit accounts you have. For example, a mix of installment loans and credit cards may improve your score, while finance company accounts with credit cards could hinder your score.
5. Number of Inquiries If you recently applied for too many new credit accounts, this may negatively affect your score. Therefore, make sure to apply for new credit sparingly to avoid any effects on your score.
With these 5 common credit scoring factors, you’re now armed with insights to help you maintain or improve your credit score. Unsure of where your credit score stands today? Check and confirm your credit score instantly with our secure Transunion credit check. Click Here to Search Sponsored Listings | 
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