1/1/2024 0 Comments Vantage credit score rangeIf you are thinking of closing a credit card that you’ve had for many years in order to avoid an annual fee, consider asking the card issuer to roll the account onto a similar card with no fee. Keep your credit utilization low, ideally below 30% of your credit limitĭon’t close old credit card accounts. Pay your bills on time and if you can, pay the total amount due each month. Tips for Increasing and Protecting Your Credit Score New credit accounts or applications can lower your credit score by generating a “hard pull” and by lowering your average length of credit history. Having both installment (mortgages and car loans) and revolving (credit cards) loans will increase your score since it shows you can handle different types of payments and terms. A long credit history demonstrates that you have had plenty of practice managing debt payments.Ĭredit mix refers to the types of credit you rely on. Length of credit history refers to the amount of time you have had your accounts. Using more than about 30% of your available credit will likely lower your score. Late or missed payments can significantly lower your credit score.Ĭredit utilization reflects the amount of credit you are using relative to your credit limit. Payment history is based on your record of paying bills on time and is the most important criterion for determining your score. What Affects My Credit Score?Īcross all of the credit reporting and scoring services, these are the most important factors that go into your credit score. For example, after a 2022 study by the Consumer Financial Protection Bureau (CFPB) found that the credit scores of one in five Americans are lowered by medical debt, the three bureaus announced that they would change their credit reports to exclude some forms of medical debt. As a result, you may see slightly different scores based on whether data was pulled from all three bureaus or just one.Ĭredit bureau and scoring algorithms also have different versions sometimes a lender will use a score drawn from the latest version or rely on an older, even years-old version of the algorithm. FICO and VantageScore get these data in turn from three credit bureaus that track your credit activity: Equifax, Experian and TransUnion. FICO and VantageScore base their algorithms on the same underlying data but assign a different weight to the same criteria. There are myriad factors that determine your credit score. Why Do I Have More Than One Credit Score? If you have applied for a few credit cards and been rejected, for example, your credit score will be lower and it will be even harder to qualify for a new card until some time has passed and your credit score has recovered. That is why knowing your credit score is so important before applying for a loan or card. But when you apply for a credit card or loan, the lender will conduct a “hard pull,” running a report that will temporarily lower your credit score.
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