Your credit score is the secret number behind everything in your life. How much you pay for insurance, your car, rent and mortgage payments, utilities, and even whether you get a job or not, are ALL based on your credit score.

This article will assist you with understanding each individual component of your credit score. For extra details on the credit scoring system you can see this article and more at www.PerfectCreditFast.com.

PAYMENT HISTORY is the largest aspect of your credit score accounting for 35% of your overall score. This aspect of your total score calculation is based on your over all payment history with your creditors. Late payments, defaulted accounts, and all other NEGATIVE information on your credit report have the greatest effect. The more paid-as-agreed accounts you have and the less negative accounts, the higher the credit score.

The PERCENTAGE of HIGH CREDIT USED is the second most important factor in the entirety of your credit score and accounts for a total of 30% of your overall score. This part of your score is based on the amount of money you owe on your credit accounts related to your high credit limits on those individual accounts. Your scores will be higher if you owe less than 30% of the high credit limit AND, your scores will be much lower if you carry HIGH credit card balances.

Your “time in the bureau”, or LENGTH of CREDIT HISTORY accounts for 15% of your credit score. The longer you have had credit accounts for, the higher the score. As you have more accounts throughout your life and your credit history grows over time, your scores will naturally increase due to this factor.

Your total ACCUMULATION of NEW DEBT accounts for 10% of your credit score. Your score takes into account how much credit you are applying for in a short period of time. It considers how many inquires you have for new credit within a 1 year time period. If you have a lot of inquiries in a short period of time, your scores will be lowered as a result.

A total of 10% of your credit score is made up of the “mix” of credit items you have on your credit report. This part of your score is affected by what spread of accounts you have and how many of each. The bureaus will score you higher if you have a home mortgage on your report with, 3 credit cards, 1 car loan, and a minute mix of other accounts. Any unhealthy account mixes lower your scores.

To obtain the best credit score make sure you pay your accounts on time, do not keep high balances on your open accounts, keep a healthy mix of credit accounts open always, and do not apply for too much new credit in a short period of time.

If you follow the steps in this article you will be on your way to an 850 perfect credit score. If you have credit issues along the way, do not worry we are experts in fixing those problems and enforcing your consumer credit rights www.PerfectCreditFast.com.

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