The credit score is a three-digit numerical value that determines the worth of a person to qualify for a bank loan or insurance policy. The rating depends on the person’s history of payments with different lenders such as banks and utility mobile bills. The score lies in the range 300-850. A score below 550 is bad, while above 700 are considered good. With information from bluewatercredit.com Credit score of 700. There are some factors involved in the determination of scores and how much they influence it.
- Payment history accounts for 35% of your total credit score.
- Credit utilization accounts for 30% of your total credit score.
- Length of credit history accounts for 15% of your total credit score.
- New credit has a 10% role in your credit score.
- Mix credit has a 10% role in your credit score.
Looking at the above point, we come to know that payment history is the primary influencer in determining a credit score. So start looking for your payment history. If you have any due payment, clear it now. After solving this never delay in making your payments. This will decrease your credit scores,
Get your credit report from all three bureaus and check for the negative items. If you have negative items on a report which in your views you have paid off, you can challenge them and get them removed from your statement. You can do this easily by providing details about the payments which were showing up as errors in your report.
The second important factor is credit utilization. You get premium offers of balance on your credit card which you can use in case you run out of money. You can use a credit balance to make a purchase and later pay the money. But take care while using the credit balance. Never go for purchasing an item at a high price, which delays your payment. This will decrease your credit score. So it is always better to keep low credit balance and place your balance in the card. If you want to have a credit score of 700 or more, keep your credit utilization rate as low as 8-10%.
How much time you take to return the balance used from credit also plays an influential role in determining a credit score. You’re account matters if it is in a long run of use.
If your account has the right amount of mix credit and reasonable installments of loan it is also a good point. Make sure to keep a proper amount of balance in your account to get a good credit score and earns lenders trust.