May 3 in General discussion
Credit
Here is a breakdown of what makes up your credit.
Payment History- Are you paying on time? This can make up 35% of your credit score. This is one of the most important parts of a credit report. This tells them how reliable you are.
Credit History- How long have you had credit
Amounts owed- This is how much you owe each creditor individually.
Credit mix- This is the ability that you have to successfully manage multiple debts and different credit types.
Credit Utilization- How much available credit you use. This applies to revolving accounts such as credit cards. Think of it as how much credit you owe versus what you have.
Credit Accounts- How many open accounts you have.
Finance company accounts- These are mortgage loans, public record, and collections.
Credit limits- Max amount of money you can spend on a credit card
Credit age- This is the length of credit history.
Hard inquiries- These occur when you apply for a new line of credit such as a credit card or a loan.
Balances- This is the measurement of total balances.
Hope this breaks down some common wording that you see when it comes to credit.
Please make sure to monitor your credit regularly, this way if you see something off you can take care of it faster.
Good credit is the key to wealth.
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Credit
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