What Actions Can Kill Your Credit Score?
So you are going to you pay your bills this month but before doing this learn about what actions will harm your credit score. Credit bureaus used your credit score as a measure of your credit worthiness. According to Experian average credit score is 692. If you are applying for any loan, credit card then all lenders, credit card companies and bankers will use your credit score to determine your credit worthiness. Generally people don’t know what actions can harm their credit score? Here are some points:
Factors build a Good Credit Score:
There are number of factors responsible for a credit score. Your credit score is divided in to various categories but the real formula every company used is proprietary. The division ratio is like 35 percent credit score based on your payment history + 30 percent is based upon the finance you have + 15 percent depend upon your credit history time length + 10 percent on types of credit that you have + and the final 10 percent credit score is a reflection of lines of credit.
Late Payments Can Kill A Credit Score
Credit history is basically made up of different lines of credit. Making late payments affect your credit score very badly. Now a days every loan, credit, phone company report about your credit status to the credit bureaus. Even the no. of days you are making late payment impacts your credit history. For example if you are making late payment by 30 days will affect less in comparison of several months’ late payment.
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