Your credit is important and unique to you. For instance, what is your history of on time payments, what is the status of your credit accounts, do you have any overdue debt from collection agencies?
So, if you want to nurture your credit score, then you need to know the three biggest factors that affect your credit:
- Payment History – Lenders want to know if you’ll pay them back. That means they will want to know your history – do you pay each bill on time every month, have any of your accounts gone to collections, do you have any bankruptcies, and when was your last missed payment on an account?
- Credit Utilization – How much debt do you have compared to your credit limits? So that your score is not negatively impacted, you want to keep your utilization rate below 30%. You can figure out what you’re using by dividing your total credit card balances with your total credit card limits.
- Credit History – How long have you been using credit? What is the average age of your credit accounts? If you’re closing accounts, remember to keep in mind how old the account is because once it’s closed, you lose the history – and that means your score can take a hit.
If you’re renting, did you know that you can nurture your credit score by having your on time rent payments reported to the credit bureaus? Solutions like RentReporters can help you build and improve your score by reporting your payments to TransUnion.