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3 Important Factors that Affect Your Credit Score

Welcome to Professor Savings.com

We teach finance basics

Hi, I’m your host today Rayfil Wong.

3 Important Factors that Affect Your Credit Score

so let’s review

A good credit score will increase the chances of  a bank lending you money.

so let’s jump to the three points

#1 amounts owed

For instance, say Jane has the credit limit of $10,000

  but uses up to $9000 then this is a big red flag.

I would advise not to use more than 20 percent of your available credit

# 2 length of credit history

Let’s say that Bianca is in college and just started using her credit card.

She does not have a long credit history as oppose to Sue who has been using her credit card for over fifty years.

Banks use credit history to predict how dependable someone will pay back their debt.

#3 Payment History

Lenders want you see if you made payments on time. Also, they take into account if you have been through such as  foreclosures, bankruptcies, or any past issues.

Having a great credit score allows you to be in great financial health so that you can be approved a loan especially when you see something.

    You want to purchase like that house you always wanted  by the lake.

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