Merchant Blog

Blog Article: Easy Ways to Manage your Credit Score


As most of you probably know, maintaining a good credit score is incredibly important, especially when applying for a loan or a mortgage. What many people might not know exactly is what goes into the calculation of your credit score. There are five key factors that go into this calculation: find out after the jump.

Payment History: Have you been making your bill payments on time?  Or making all of your minimum payments on your credit cards? This counts for about 35% of your score.

Amount of Debt: It is said that you should try and use only 30 percent of your available credit. This means if you credit card has a $1000 limit you should only use $300.  Seeing as this is not easily done experts suggest having more than one credit card and then using only a small portion of available credit on each of those cards. This factor counts for 30% of your score.

Length of Credit History: Credit Cards can be an overwhelming thing to apply for when you are young but the sooner you get rolling on building credit, the better! There are other ways to build credit without signing up for a credit card, for example, put your household bills under your name and ensure that they are always paid on time. This can mean utility bills, cable bills, phone bills etc. This is only 15% of your credit score but it is important to keep it in mind!

New Credit: This only counts for a small portion of your credit score – 10% but it is still important nonetheless. You should always be careful with the amount of new accounts you open, or inquire to open, in a short period of time.

Types Of Credit: The wider the variety of your credit the better the chances of having a high score. This means that if you were to have 3 different types of credit accounts, lets say a loan, a mortgage payment and a credit card and you were to maintain them all properly you would have a higher credit score than someone with just a credit card. This also counts for 10% of your credit score.

It is never to late to build your credit, and it is better to start late than not at all. Experts suggest that you check your credit at least once a year in order to properly manage it. You can do so at

One thing you may not know is that you can dispute your credit score. If you think your credit score could be higher then check out some tips on how to dispute your credit here.

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