Credit scores are calculated based on our determined by each individual credit reporting agency. There are several factors that go into what your eventual score will be we will discuss the top for today.
1. The number of negative items on your report will affect the credit scores. So for example if you have three questions accounts on your report each of these will have an effect on your score and the severity of that effect will depend on how much you owe to these accounts and whether or not money is still do.
2. The number of late payments on your otherwise satisfactory accounts. How late your payment is also has an impact on the score. So if you have for 30 days late payments across for accounts this may not have the same effect as having 90 days the payment and 30 daily payment. A 90 day late payment is an indication of a much larger problem.
3. The number of on-time payments you have to have a positive effect on the score on your report. If you have six or more positive payments on a account on your report this is good and will increase your score.
4. The final item that affects credit-scores is the amount of credit that is being utilize as a percentage of available credit. You want to keep this amount as low as possible in order to demonstrate that you are not maximizing your debt. If you have an excessive amount of debt even with a high credit score this may raise some red flags for creditors.
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