Your credit score affects the interest rates you pay on credit cards, auto loans, and mortgages. It can even affect your insurance rates. Here are two of the major contributing factors that make up a credit score:
Balances Versus Limits: Keeping balances as low as possible, ideally under 50% of the high credit limit on a credit card and other trade lines, will help keep scores high. Having a balance that is very close to the limit will cause scores to drop. Let your balance climb over the high credit limit and your credit score will pay the price and then so will you.
Recent History: Making your monthly payments on time is the most important factor in getting and keeping a good credit score. The most recent 12 – 24 months is the most important period of your credit history.
If you have concerns about your credit history, check out my video on Credit or give me a call for an over the phone consultation - here in New Hampshire at 472-2272