credit score is the leading industry indicator of your credit standing
among credit grantors. The risk categories are based on U.S. credit
score distribution and do not necessarily reflect how lenders make
their credit decisions. Please be aware that there are many different
types of credit scores used in the financial services industry.
The type of score used, and its associated risk levels, may vary
from lender to lender.
WHAT MAKES UP
Your Score is based on the combination of your positive and potentially
negative factors on your credit report. For suggestions on what
you could do to potentially help your credit, read the Score Factors
your credit report often are not the only factors determining your
credit score. Many lenders also use information submitted on a credit
application — such as your income and employment history —
when determining a custom credit score. Please be aware that the
advice below is not intended to be, nor should it be construed as,
legal advice. In addition, the advice below is oriented to the Experian
credit score only; lenders often use their own custom credit score
and score factors when making credit decisions.
THAT ARE POSITIVELY AFFECTING YOUR SCORE
Listed below are the top factors that raised your score. They are
listed in order of importance.
for credit made in the last two years.
Having no applications for new credit in the last two years shows
lenders that you are less likely to accumulate additional debt by
opening new accounts.
Few, if any, 30 day (or more) delinquencies.
You do not have a delinquency of 30 day or more reported on your
credit report. Continue to pay all your bills on time - it is generally
the single most important contributor to a good credit score.
SCORE FACTORS THAT ARE NEGATIVELY AFFECTING YOUR SCORE
Listed below are the top factors that lowered your score. They are
listed in order of importance.
Lack of a real
estate loan (or lack of a real estate loan that has always been
paid on time)
In most cases, having a real estate loan that has always been paid
on time shows lenders that you have established a strong credit
base, and reflects positively on your credit responsibility. The
lack of a real estate loan on your credit report does not decrease
your score; however, it generally means that your credit score may
not be as high as it could be. One or more late payments on a real
estate loan usually has a significantly negative effect on your
credit score. Since a real estate loan is typically a consumer's
greatest debt obligation, lenders generally view late payments as
a sign that you may be having trouble meeting all of your debt obligations.
The outstanding balances on your revolving accounts are greater
than the average in your credit category
Your outstanding credit balances on your revolving accounts are
higher than the average consumer in your credit category. Most lenders
view this negatively because it may show that you are taking on
too much debt. By avoiding taking on new debt and paying down your
total debt as soon as you can, your credit score will usually improve.
The total credit extended to you across your bankcard accounts is
less than the average in your credit category
Since current lenders have extended you lower bankcard credit limits
than average for your credit category, a new lender may assume that
you are riskier than average. If you minimize outstanding debt and
pay all your bills on time, many lenders will eventually raise your
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