Currently, businesses are using the credit score to make decisions about their clients. Credit score, therefore, can affect your life that you can even imagine. The credit scores count greatly on the amount of interest you get on your credit cards. When you visit any financial institutions, the credit score will determine if you will be approved for a loan or not. You cannot even access the car insurance when you have a bad credit score, or when you do. The interest rates will be huge. In short, the credit score can make your life terrible or more improved depending on how you handle your credits. This article highlights the Factors which influence credit conditions.

Your payment information

Your credit score depends on how timely you pay your bills and other credits. This is the most common determinant factor that will make your credit score. You need to avoid some payment issues such as the repossession of goods, charge off, collections and being bankruptcy. These issues will devastate your credit score. Having bad credit will make it impossible for you to be approved for anything that may require you to have a good credit score. To improve your credit score, you are supposed to make your payment for your bills in good time each month.

 

The level of debt

In the process of calculating your credit score, among the few factors considered are related to the level of debt that you have. The total debt that you have in overall is calculated to determine the ratio of the credit score. The level of debt will also be considered when you are applying for a loan in any financial institutions. When you have too many debts, you will affect your credit score badly. The best thing you can do to improve your credit score is to improve the payment of all your debts to reduce your balances.

 

Your age of credit history

When you consider the credit score, the age of your credit history contributes at least 15%. The calculation considers the age of the oldest account you have and the age of all your accounts on average. When you have an old credit age, you are making a great credit score because it acts as a proof of how experienced you have been in handling your credit in the past period. These records will favor you in collecting a loan. You are not supposed to open various new accounts at the same time because they will affect the average age of your credit history.

The types of credit you have

There are two basic types of credit accounts an individual can have, that is, the revolving accounts and the installment loans. When you have both of these accounts, you are likely to improve your credit score, and your report is better to guarantee you a good experience in handling and managing various types of accounts. These types of credits contribute about 10% of your credit score. However, not having one of the credit accounts will not devastate your credit score.