5 Key Elements That Can Impact Your Credit Score
Several factors can impact a person's credit score. Here are five key elements that can significantly influence credit scores: Payment History: Your payment history is the most critical factor in determining your credit score. It reflects whether you make your payments on time, including credit card bills, loans, mortgages, and other debts. Consistently making on-time payments helps build a positive payment history, while late payments or defaults can have a negative impact. Credit Utilization: Credit utilization refers to the percentage of your available credit that you're using. Keeping your credit card balances low relative to your credit limits is important. High credit utilization can indicate a higher credit risk and may negatively impact your credit score. Aim to keep your utilization below 30% to maintain a healthy credit profile. Length of Credit History: The length of your credit history is a significant factor in credit scoring. A longer credit hist...