Your credit score is a mathematical algorithm that takes certain factors into account when measuring risk. Knowing how your financial history accounts for this score can help you avoid the consequences of poor, often irreversible, credit.
Payment History (35 Percent)
Payment history is how you pay your bills. And not just credit cards, but mortgages and loans as well. Late payments, not paying at all, or having an account sent to third-party debt collectors are reported to the credit bureaus and drive your score down fast.
Credit Utilization (30 Percent)
This is the ratio of your current debt to your credit limit. A high credit balance raises credit utilization (bad) and paying off debt lowers utilization (good). Maxing out (100 percent utilization) and closing credit cards that have active balances can hurt your credit.
Length of Credit History (15 Percent)
The longer your credit history is, the better. An older credit history implies that you pay your bills, which improves your credit.
Types of Credit Used (10 Percent) and Credit Inquiries (10 Percent)
As of 2009, you can earn points for successfully managing different types of credit, such as installment, revolving (credit card), and consumer finances. However, multiple inquiries for a new loan or line of credit can lower your score.
Other Things That Hurt Your Score
When a creditor is forced to take legal action against you (judgment), write off your debt as a loss (charge-off), or if you file for bankruptcy, your score could be ruined for years.
I got flagged for a late payment on my credit report, I had bankruptcy chapter 7 discharged January 2020, I had 11 open account with all exceptional credit history which decreased my credit score to 515. Since then I’ve been looking for a way to rebuild my credit. I asked a question on my Fico forum on how to rebuild my credit history a member referred me to ROOTKITS CREDIT SPECIALIST and told me how they helped his family after 5 years of bad credit report. I decided to give them a shot on 1st of November 2021 and explained my situation to them. They promised to fix my credit report, but I’ll recommend their service if job is done, 3rd of November I got a text from them to confirm my new credit history. my score has been raised to 811 excellent score across the 3 credit bureaus. Late payment, bankruptcy have been deleted. I decided to wait after 7days to confirm if it’s a permanent hack. I now have a new credit history. I sincerely recommend them to anyone who has similar issues. Email them on: rootkitscreditspecialist@gmail.com Or CALL +1 760 474 3440.
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