Now that you know what counts towards your overall credit score and what does not, you should know exactly what you need to pinpoint in order to enhance your score. None of these things or anything like them do anything at all to your credit score, so instead, focus on the five primary factors that we outlined and discussed above. Examples include how much money you earn, your age, your marital status, your child support payments (if any), how much money you have donated to charity, where you work or live, or your employment history. There are many things that people assume go into their 658 credit scores but that actually don’t. What Does Not Count Towards Your 658 Credit Score? Conversely, if you have more types of credit but owe much on each of them, your credit score will be lower. Your credit score will include all the different credit accounts that you have, and the more you have and the more you handle responsibly, the higher your score will be. Examples of different types of credit includes credit cards, instalment loans, home mortgages, and car payments. This will then translate to them believing that you might not be able to afford to pay for your mortgage each month, and they may require a higher down payment or interest rate in order to offset it, or they might decide just not to work with you at all.įinally, the fifth and final primary factor that your credit score will analyze is your type of credit. If you have opened up multiple new credit card accounts, this will tell the lender that you are going to make multiple new purchases on these credit cards in the coming days or weeks (even if you actually aren’t, they will still assume that you are). The bank lender is going to look at all of your existing debt obligations as part of how much you can afford to pay for the house each month. To put this into perspective, let’s say that you have applied for a mortgage. If you have opened multiple new credit accounts relatively recently, the score will assume that you are a larger credit risk, because people will tend to open a new credit account when they are getting into debt or have just lost a job and need more cash. While your score will analyze all of the accounts that you have equally, the specific accounts that may affect your overall credit score more is your new credit accounts. The fourth factor is going to be new credit. There’s nothing wrong with having a long or a brief history here, so long as you manage your accounts responsibly and you actually pay your monthly payments when you are required to do so. This is simply a how long you have been using your credit and the ages of each of your credit accounts. The third primary factor that counts toward your credit score is your credit history. The best way to have a positive credit rating here is to have a variety of credits and loans and to manage each of them in a very responsible manner. If they see that you don’t owe any on your credit whatsoever, they may perceive you as someone who is more inexperienced or who doesn’t take risks, and may subsequently be a little less willing to work with you.Īnother aspect of your amounts owed is how much money you owe on each of your loans, including your credit cards, your car payments, and your mortgage payment. If lenders can see that you borrow a little money and pay it all in the allotted time, they will see that you have experience in borrowing money and paying it back responsibly. That being said, it may also not be the wisest idea to show that you owe nothing on your credit. Here’s a piece of advice: the less you owe on the credit, the better your credit score will be. One such example is the amount of your allotted credit that you have used up. Again, there is a variety of aspects of this that goes into your 658 credit score. The second biggest factor that counts towards your credit score is the total amount of money that you owe. There are also a variety of aspects of your payment history that your credit rating will include, including how late you were on your payments (1 week, 1 month, 2 months, 3 months, and so on), how many bills you paid and how many you did not, if any of your accounts have gone into collections (major red flag by the way) and if you have a history of foreclosures, bankruptcies, and debt settlements. This is simply whether you have paid all of your bills on time. The first and most critical factor will be your overall payment history. So what factors contribute to showing that you are fiscally responsible and stable? In essence, your credit score tells you whether you have a responsible credit management and a history showing that you have been financially stable.
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