Which Sectors Of The Credit Score Chart Matter Most?

Credit score chart shows the percentages which each category of information have in the overall make up of the FICO scoring profile. The two most important categories are payments made and credit utilization, and paying attention to these alone will be enough to get you what you want in many cases. There are other categories which measure the length of the credit history, the different types of credit which you are using, and the age of each individual account.

By far the most important sector of the credit scoring chart is that which relates to payments made. Although the percentage given to this sector is only 35%, it is the sector which is easiest to completely ruin if you don't keep paying bills on time. Each time you have a repayment to make it will be recorded on the credit file, whether you have paid it on time, paid it late, or not paid it at all. These records take seven years to drop off the file,so it is absolutely essential to pay every bill on time. If you can met up automatic payments for your regular bills, this will decrease the chances of a bill being overlooked by mistake.

The credit utilization sector is the one which is easiest to game if you are intending to artificially create a high credit score. It measures the amount of credit you have available, and it also measures how much of it you are currently using. This percentage will constantly change, but it is important to keep it as low as possible. If you can apply for several credit cards over time, you can benefit when the credit limits are increased lowering the ratio even further. If you have to apply for high interest cards at the start, make sure that the balance is paid in full every month.

credit rating

The minor sectors of the credit score chart only rate 10% of the total, and in many cases they are nothing you can actually alter. The length of time accounts have been open is a major factor in one of the ten percent sectors, but you can only open accounts now and let them age over time. The same applies to the overall age of the credit profile, which will increase as you go through your life. The only positive steps you can take relate to the largest two categories, as the others just happen naturally.

As ever, the most important step is to pay bills on time, every time. Even if you have no actual borrowings at this time it is vital to make sure that household bills are paid whenever they come in. Assuming that you have no serious black marks such as bankruptcy on your file, you should be able to put in place a plan which will see your rating rise over the coming years. There are some credit cards known as sub-prime cards which charge extremely high rates of interest, and you will have a chance of getting one of those.

The most important sectors of the credit score chart can be boosted in this way. You get a high interesr card, which are issued to people with only average credit ratings because of the high interest, and then use it properly for several months or years. The interest rate will not affect you if you use the card wisely and pay off the full balance every month. As you do this, you will build up a profile of successful payments, and you will also get a limit raise in time. This will boost the key areas of your credit score chart.

 

 

repair credit score

Repair Your Credit Score - Click Here

 

 

 

repair credit score

Repair Your Credit Score - Click Here

 

share