When determining your credit score there is five key components.

1.Payment History– Paying your credit cards or revolving accounts and installment loans like car payments and student loans on time is important. They will report favorably to your credit as long as you pay your bill before it is 30 days late. If you make your payment after the 30 days then you will feel some sort of impact to your credit score once it has been reported.
2.Amounts Owed– The amount you owe compared to the credit made availiable to you impacts your score. Owing close tou your limit or being maxed out will impact your score adversely. A good bench mark is try to keep your revolving debt below 30% of your overall credit limit. For example if you have a limit of $1000.00 try to keep your outstanding balance at $300.00 or less.
3.Length of Credit History- The longer you have established and maintained your credit will help your credit score. (If you have no credit and want help getting started please contact me)
4.New Credit– Opening several new accounts in a short time period will have a negative impact to your credit. The reason for that is because you are obtaining new debt with no history of paying them.
5.Types of Credit-Having a mix of revolving credit, installment accounts and mortgages accounts will help your score. If you have a good history with handeling credit cards and installment accounts rather than just one type will help your score.

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