Do you pay on time? Consider this section to be the most important for your credit score. Your payment history makes up a full 35% of your score. This information is on your credit report. Beware that lenders will have access to your payment history whenever you apply for finance. To keep your score higher, always pay your payments a few days early. Lenders will frown on late payers, and may report you even if you're only late by a few days. This will definitely for sure reduce your credit rating considerably.

How Much Debt You Got? What is referred to by the credit industry as debt ratio makes up 30% of your score. This is described by the debt you owe versus your credit limit. An example of this is if you have a credit card with a spending limit of $500 and you owe $480 this is a very large debt ratio and could have a negative influence.

You should make an effort to reduce your credit card debt by 50% or lower, this will positively influence your credit score. If you pay off your credit card or keep your credit card debt under the 50% mark you will receive the exact same amount increase in your credit rating.

Been Using Credit For Years? The longer your credit has been established, the better. Lenders want to see that you consistently over a long period of time pay your bills. This part makes up 15% of your total.

For a high credit rating don't close paid off accounts. Credit card accounts you have had for some considerable years, it's a good idea to, leave the account open. This for sure will increase your credit history and in turn increase your credit rating.

What Type of Debt do you have? No matter what type of debt you may have this will count for 10% of your total credit score. There are different types of debts creditors will look for, they are loans, revolving credit & credit cards. The reason lenders rate the difference is because bank loans and store cards have set monthly payments.

If your revolving credit makes up most of your credit report, this will look bad on your report. This is because lenders know that the monthly minimums will vary every month depending on how much you chose to spend.

Have You Recently Tried To Get More Credit? The high credit scorers have one thing in common, they apply for credit only a few times. This is responsible for 10% of your credit report. Be responsible when applying for credit, as this stays on your credit file for two years. If are getting ready to financing something, limit your credit checks as much as possible.

People shopping around looking for a big purchase like a car, can fall into this trap. If you have gone to a few different car dealers while shopping for a vehicle and let them run a credit check report at each one to see if you're credit worthy, you have now greatly reduced you score. Don't let any creditors run a credit report until your ready to purchase.

This is how your credit score is figured. Take on board these tips and your credit score will increase for sure. Your credit score total can be between 300 and 850. Obviously the higher the better for your credit rating.