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The 5 ways your credit score is graded.

1 - Utilization: What is your total debt you are using out of your total amount of credit. For example if you have credit cards that equal to $1,000. The amount that you spent is $300 that means you are at 30% utilization which is the max I would say go. The higher the utilization on your cards the lower your credit can be impacted. 2 - Payment history: Do you pay on time? This is important wether it is a credit card or a car loan having less than 100% on time payments can negatively impact your score. So stay on top of your minimum payments. 3 - Age of your credit. If you were 18 when you got your first credit card and you got your second at 19 and now you are 20 years old. So that means your credit started 2 years ago, and now you have to divide the ages of the old card (2 years) and the new card (1 year) and now divide them by the total number of accounts so that would be 2 years +1 year = 3 years divided by (2 accounts) would be 1.3 years The calculation is the following : divide the ages of your oldest and newest accounts by your total number of accounts. If you only have one credit account, your length of credit history and average credit age are the same. 4 - What type of accounts When you have a credit card that is considered a revolving account. When you have a car loan that is considered an installment loan due to it being paid back every month without the ability to reuse credit. Having a healthy mix of up to date account is important. Having multiple credit cards, and eventually installment loans could possibly make your credit score raise depending on your mix. 5 - Inquiries Every time you get your credit checked by a business or an entity and sometimes possibly a person. You will get something called an Inquiry or a hard pull. These hard pulls are considered on of the following: Soft pull - This is where your credit is checked and is just looking at basic information typically in back ground checks for employers and even for pre- qualifications on credit cards. These do not affect your credit score and you may not see it on your credit report. Hard pull - This is when your credit is looked at typically by a bank, or lender when seeking credit cards or home loans. They in-depth regarding the following factors above, they want to make sure you are responsible. They will check payment history on your other credit obligations as well as the amount of current debt you have. This will affect your credit score and you typically will see it on at least one of your credit reports. Good news is after two years a hard pull will fall off your credit. Follow Money man D for more tips -

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