There are a variety of factors that can impact your credit score, including:
- Payment history: Making timely payments on your debts is one of the most important factors in determining your credit score. Late or missed payments can have a negative impact on your score.
- Credit utilization: Credit utilization is the amount of credit you are using compared to the amount of credit available to you. Using a high percentage of your available credit can have a negative impact on your score, as it may indicate that you are relying heavily on credit.
- Length of credit history: The longer you have been using credit, the more information there is in your credit report for lenders to use to evaluate your creditworthiness. As a result, having a longer credit history can be beneficial for your score.
- Credit mix: Having a mix of different types of credit, such as credit cards, mortgages, and loans, can be beneficial for your score. This is because it shows that you can handle different types of credit responsibly.
- New credit: Opening new credit accounts can have an impact on your score, especially if you open several new accounts in a short period of time. This is because it can indicate that you are taking on a lot of new debt, which can be seen as a risk to lenders.
It’s important to note that these are just a few of the factors that can impact your credit score, and the exact weightings of these factors may vary depending on the credit scoring model being used.
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