Payment History – 35% of your credit score is based on your payment history. Paying debt on time and in full has a huge, positive impact. But on the flip side, when you are late for payments, and missing payments, this has a huge, negative impact on your credit score.
Outstanding Balance – 30% of your credit score is based on debt usage. Most credit experts recommend that you stay below 30% of your credit utilization in order to not have a negative impact on your overall score.
Credit History – 15% of your credit score is based how long you have had a history of using credit. This marks the length of time since a particular credit line was established and therefore, the sooner you learn to use credit responsibly, the better for your overall score in the future.
Type of Credit – 10% of your credit score is based on the type of credit: installment vs. revolving debt. A mix of auto loans, credit cards and lines of credit is more positive than a concentration of debt from credit cards only.
Inquiries – 10% of your credit score is based on the total number of inquiries that have been made in a six month period. Each inquiry can cost from 2-50 points.
So there you have it! By taking care of the items that can and will have a huge impact on your credit score, you are able to obtain loans faster, receive more favorable rates, and have easier access to credit to buy homes, education, business ventures or even access funds for everyday purchases.
We help borrowers & professionals with Private Mortgages all across Ontario!
Let’s Get Started today!
Call:519 342 7295 |
Email: office@privatemoney4mortgages.com
