What Affects Your Credit Score - Learn Which Things Matter

Your credit score isprimarilyaffected by a few major things on your credit report

, but let's first discuss the things that don't affect your credit score.

1. Your bank account has no effect on your credit score (except when you bounce checks and they turninto collections).

2. The payment of your utility bills does not affect your credit score (unless you don't pay the bills and they become collections).

3. Your payment of your insurance does not affect your credit score.

4. The payment of your rent doesn't affect your credit score (except whenyou violate your lease and that becomes a collection or judgment).

5. Paying medical bills has no effect onyour credit score (unlessyou don't pay them and they turnintocollections).

What affects your credit score is anything that shows up on your credit report. Any credit cards and loans on your report affect your score. Some banks (especially smaller) don't report to the credit bureaus and loans that don't report to them don't help your credit score. Any late payments in excess of thirty days late on your credit report have a highly negative effect on your credit score. If you get 60 or 90 days late, it will take a very long time for your credit score to recover.

The balances you carry on your credit report are also what affect your credit score. Carrying high balances in relation to the card's credit limit will negatively affect your score. You should never carry a balance over thirty percent of the credit limit. If you have balances over 30%, you should pay them down.

New credit will impact your score, especially if you don't have a lot of credit. If your overall credit history is not very long, taking on a new car loan will lower your score. After you have paid toward the loan for 6 months, if your payments were on time, they will start improving your credit score, but to begin with, your score will suffer.

When it comes to managing your credit score, knowing what affects your credit score and what doesn't is hugely important.

What Affects Your Credit Score - Learn Which Things Matter

By: Matthew Wierzbinski

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