Understanding Credit Scores
Credit scoring can be difficult to understand at times but try to remember that the score is only made up of five factors summarized below:
Pay your bills on time, avoid judgments and tax liens and you’ll be okay. The longer someone pays their bills on time the less the credit score will be affected. Time heals this category.
The lower the better, remember that revolving credit card debit is the most significant factor in this area. It is always better to pay off credit cards before an auto or mortgage loan to get the biggest score increase.
10% of the score is derived from the mixture of credit you have on your credit report.
10% of the score is derived from the number of times you apply for credit.