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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