How to Get a Great Credit Score

What will help and hurt my credit score?

The following 2 items count for about two-thirds of your credit score:
Your Payment History
Having a long history of making payments on time on all types of credit accounts is one of the most important items lenders consider before approving a loan.
Owed vs. Available Credit
This compares the amount you owe versus the total amount of credit available.  Your credit score can be lower when you use more than 50% of your available credit for each account.  This is because when you are at the point of possibly maxing out your credit limits, lenders see you as a higher risk and more likely to have late payments in the future.
The following 3 items count for about the last one-third of your credit score:
Length of Credit History
A credit report containing a list of accounts opened for at least 10 years or more will help your credit score. 
New Credit
Opening several new accounts in a short period of time can lower your credit score.  Along the same lines, multiple inquiries may also lower your credit score.  
Type of Credit Used
A mix of credit cards, retail accounts, finance company loans, installment loans and mortgage loans will help your credit score, as long as they all follow the above rules. 
About 13% of Americans have a credit score of 800 or higher.  If you were to look at their credit report, they generally have:
·  4-6 credit card accounts
·  No late payments in the last 7 years
·  At least one installment loan (mortgage or car) with excellent payment history
·  An average of 10 years credit history and a few accounts with 20 years of good history
·  Low number of credit inquiries (less than 3 in a 6 month period)
· No bankruptcies, foreclosures, judgments, charge-offs or collections
·  Debt limits at no more than 35% of their overall credit limits per account
To sum it up, having a long history of on time payments, using the right mix of credit and not maxing out on available credit are the keys to having a great credit score.

Wes Lueck
Arizona Lending Source, Inc.
480-889-9990 office