Here’s what affects your credit rating.
Having a reputable credit score is imperative in becoming established in many areas, and maintaining a balanced report is key in keeping that score at a desirable level. Creditors and lenders automatically review a consumer’s credit score and overall credit report in their approval process, and a stable score is one of the primary elements that they are looking for.
Many of us assume that we have a general idea when it comes to the range of our credit scores, but recent studies have shown that over 40% of Americans are unaware of their actual scores. Information is continuously being processed and sent from creditors to the three major credit bureaus, so it is likely that our recent financial activity has affected our score more than we realize.
Credit scores can be both positively and negatively impacted by a variety of actions, decisions, and claims, so it is important to have a firm understanding of what directly impacts your score. Even if these factors won’t immediately affect our rating in a sizable manner, they may have a monumental impact in the future.