One of the services that monitors my credit is with US Bank. While I don’t pay a lot of attention to it because my score is always above 800, I decided to look more closely one day.
And I found this handy chart that describes what a credit bureau looks at in determining the credit score:
The factors that determine your score are:
- Payment history 40% – extremely high impact
- Credit usage 20% – high impact
- Age of credit 21% – high impact
- Balances across all accounts 11% – moderate impact
- Recent credit checks 5% – low impact
- Available credit 3% – low impactTotal: 100%
As you can see from the above, 81% of your credit score is about how you pay on time, how close you are to your credit limit, and how long you’ve had your accounts.
With 40% of the score based on paying your creditors timely, this is the most important.
Are you monitoring your credit report and usage?
To Your Prosperity,