11 Things That Surprisingly Don't Affect Your Credit Score
Here's the lowdown on how your credit score is calculated. LIGHTKITEGIRL VIA GETTY IMAGES With so many rules to follow and myths to debunk , credit scores can be pretty mystifying. Even so, having good credit is essential for everything from borrowing money to finding a place to live. It pays to know how your credit score works. That means understanding what doesn’t affect your score just as much as what does. And you might be surprised by what that includes. How credit scores are calculated Before we get into what doesn’t impact your credit score, it’s helpful to review factors that do go into the calculation. You actually have dozens of credit scores, but the one most commonly used by lenders is your FICO credit score : Payment history (35 percent): The most important factor in calculating your credit score is your payment history. Paying your bills on time is one of the best ways to improve your credit score. Amounts owed (...
Comments
Post a Comment