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    Credit Scores and What You Should Know



    Have you ever sat there and wondered why your credit score reacts the way it does to certain situations? I know I have! There are several factors, 5 to be exact, that effect your credit score in different ways. Here is a little about them….


    Payment History: this is why making sure your payments are always on time is incredibly important. 100% on time payment history keeps your score in good standing. A 30-60 day missed payment can be easier to come back from but may still damage your score. 90+ days of a missed payment will most likely lower your score and disqualify you for certain loans. Payment History makes up 35% of your score!


    Account Balances: Credit cards play a huge factor in your score. Keeping your balances under 30% of the card limit and you should be fine. Want to do even better, stay under 10%. Always remember that banks and credit card companies usually share their info with credit bureaus on the same day every month and account balances account for 30% of your score!


    Length of Credit History: The longer the credit history the better your score may be. I found that having an account open for 7 or more years can really benefit you. So check your credit history before you decide to close certain accounts because it could really impact your score. This has a medium impact on your score so it’s not as much as the first two but still very important and accounts for 15% of your score.


    Credit Inquires: Hard inquires can stay on your account for up to 2 years. These are made when you fill out applications for a loan or credit card. Keeping these at 1-2 for a 2 year period won’t hurt your score as bad as having 5 or more. This accounts for 10% of your score.


    Types of Credit: Its good to have a healthy mix of credit such as cards and loans. This accounts for 10% of your score.


    It is good to check your score and history regularly. A great FREE tool is or Capital One and other lenders that offer FREE credit score checking with their cards.


    Please share, like and comment below! 

    Germantown, WI Real Estate – Katelyn LeTourneau, REALTOR®. I specialize in single-family homes and condos in Germantown, Jackson, Richfield and surrounding Wisconsin communities. Please feel free to contact me directly at (262) 923-6066.

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