Once Upon A Time...

That sounds like a good way to start a story ~ Let's call it your Credit Story.

There are 5 Major Factors that Make Up a Credit Score:

  1. Payment History
  2. Credit Usage
  3. Credit Age
  4. Mix of Credit
  5. Inquiries
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Keep in mind, that Credit doesn't make a lot of sense.  If you remember that, try not to argue and shake your head often, you'll be way ahead of the game.  :-)

Mortgage due calendar date reminder circle.
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attachment-Mortgage due calendar date reminder circle.

Let's Start with #1, Payment History

  • Essentially what a creditor wants to know is whether or not you're good about paying your bill on time.

Read it again.  This is the single, most important thing you can do to get or keep an acceptable credit score.  And, it makes up 40% of the overall score.  This can turn you into an excellent borrower.  On the other hand, if your payment is late or you miss or skip a payment, it can take your score down quickly. 

See Also; Risks of Autopay

There are many, many different things that go into a credit score.  We'll continue to explore the 5 biggest influences on your number.  I often refer to credit like sneaking out of the house when you were a teenager.  Your parents somewhat trusted you until you snuck out, past curfew without their knowledge or permission.  You got caught.  Now you have to earn that trust back - Whew!  Not an easy task.  It only takes a few mistakes to screw up your credit ~ but it takes a really long time to get it back!

In case you missed it:  Credit: Cash is NOT King (part 1) (theriver979.com)

Getty Images/Tetra images RF
Getty Images/Tetra images RF

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