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Determining Your Credit Rating

by Jim Witt

If you have bad credit and need credit restoration help, it is important to understand how your credit rating was determined. There are certain things that will determine your credit rating. If you stick to these items you will have a much better credit score. People who don’t are the ones who normally seek credit restoration help.

Credit ratings are determined by some main points. Each rating will differ in various places around the world, obviously, but there are similar factors with each. Here are the main ways that your credit will be decided.

Payments – Your payment history will greatly affect what your credit score is. If you are great about paying off your bills, your credit rating will obviously be higher. The more delinquent payments you have, the lower your score will be.

Debt – Lenders like to see that borrowers know how to use their money. They like to know that they are living within their means, not using it to get in to even more debt. The best credit ratings are people who do not have more debt than 15% of their after-tax income.

It is also important to limit the number inquiries you have open. Credit inquiries are always going to be recorded. However, inquiries such as pre-screenings do not affect your score in a bad way.

However, the hard inquiries do affect a person’s credit. If you are seeking a loan, for example, the lenders will pull the consumer file. This will affect their credit score if there are too many inquiries done within a certain amount of time.

Credit Lines – If you have credit lines that are not used, this might affect your credit score. But at the same time, closing your credit lines will also determine your credit score. A lot of credit restoration places may advise you to close a credit line that you aren’t using, but be sure that it is not an account that has a lot of credit history with it. It will be much better on your credit if you close a newer account than an older one.

Credit Types – They also check to see what types of credit accounts your have. Having more than one type of credit line looks good for your credit. Think of it as making you look more well rounded.

Nitro Credit specializes in credit repair, credit help, increasing your credit score, and credit restoration. We ensure you have a clean slate and the confidence of good credit.

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