For many consumers the credit score is a unknown. They do not really know what is taken into consideration to affect a credit score and how it theoretically measures creditworthiness. Of course, we all know that it is essential to pay bills on time but what other factors come into play with a credit score?

A credit score is a numerical rating that takes into consideration certain statistics and compiles that information into a number that represents a consumer’s creditworthiness. The higher the score the better credit risk the consumer is deemed to be. Scores above 700 are thought to be excellent while scores below 600 are deficient.

Contrary to widely held belief, credit scores can adjust often. There are a array of factors that are involved in the scoring and these factors vary frequently. You may have always been prompt with your payments yet other factors can bring down your credit score. Different types of credit are scored differently and having too many inquiries on your report can also be detrimental.

Here is a breakdown percentage of the factors that influence your credit score: 35% is based upon your punctuality and payment history. Only payments more than 30 days past due are counted negatively. 30% is attributed to your ratio of debt, meaning your amount of debt compared to the credit you have available. 15% is for the duration of your credit history. 10% is the types of credit used. For example, installment, revolving, consumer finance. Be informed that consumer finance accounts are considered a negative. And the last 10% is recent searches for credit and/or the amount of credit obtained lately.

If you want to advance your credit score, it is helpful to be attentive of these issues and use them to your advantage. Make sure that your payments are all made on time and do not charge or use more than 35% or your open credit. Stay away from consumer finance companies and department store credit cards and do not let anybody inquire into your credit report unless you absolutely must.

You can augment your credit scores and repair your credit. There are professionals that focus in credit repair or you can do it yourself but be aware that you have the right to challenge negative credit and negative credit scores.

Get educated and informed about your rights and what is on your report. You don’t have to suffer|experience|bear|go through/spin] with low credit scores when you know how to repair your credit.