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Credit Scores are determined by Some Decisive Factors

By Andy Snyder
Published: Thursday, June 17th, 2010

Consumers, especially credit holders should know what credit scores are. Credit scores are a three-digit number that is so special and important that it can determine whether loans for buying a house or a car, opening a new credit card account, or other financial related stuffs, or financial opportunities. These three-digit numbers, or credit scores, can determine such financial opportunities, because it is regarded by credit card issuers or creditors as a way on how a credit card holder can perform on doing things like pay debts and pay credits.

These credit scores, which credit issuers and creditors look at when having possible credit holders, are computed in different procedures, ways, or simply in different scoring models. Information found on credit reports are mathematically evaluated and then transformed into three-digit numbers or credit scores. These numbers or credit scores that determine important financial opportunities can either be high or low, good or bad, depending on how clean or reputable a credit report is.

So as a credit score advice for credit holders, that they should always keep their credit reports a reputable credit report. Because when having a reputable credit report, it means a good credit score, and when having a good credit report and credit score, having financial opportunities like having house or car loans, opening of new credit card accounts, and even applying for a job is easy to have.

Because of the fact that credit scores determine such financial related things or financial opportunities, it is a good credit score advice for credit holders to know what are the decisive factors or criteria that determine a credit score. Aside from knowing these decisive factors, another credit score advice is that credit holders should also understand these factors that are used to determine credit scores, because when fully understood, it is easy to have a high credit score or to raise a credit score.

So the decisive factors that determine a credit score are things that are found from credit reports.
One is your credit history which includes your account of on time or delayed payments of bills.

Second is your being punctual in paying your bills definitively increase your credit score. You can avail lower rate if your record of payment is good.

Third is the older your account is the better score will you have. This means that you are not supposed to close old account but make sure that you have already paid all your bills for that account.

The fourth factor that determines your credit score is the types of credit cards you have. As a credit score advice, you should have different credit cards which your lender would perceive that you can handle any types of cards.

The fifth factor and last is your recent loans. Make sure that you have paid them prompt because your lender will able to predict that you can maintain good record of paying.

These are the five most important factors that determine your credit score. As a credit score advice, you can increase your credit score by giving them enough attention.

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