One of the services that monitors my credit is with US Bank. While I don’t pay a lot of attention to it because my score is always above 800, I decided to look more closely one day.

And I found this handy chart that describes what a credit bureau looks at in determining the credit score:

The factors that determine your score are:

1. Payment history 40% – extremely high impact
2. Credit usage 20% – high impact
3. Age of credit 21% – high impact
4. Balances across all accounts 11% – moderate impact
5. Recent credit checks 5% – low impact
6. Available credit 3% – low impactTotal: 100%

As you can see from the above, 81% of your credit score is about how you pay on time, how close you are to your credit limit, and how long you’ve had your accounts.

With 40% of the score based on paying your creditors timely, this is the most important.

Are you monitoring your credit report and usage?

To Your Prosperity,

Rennie

The post Do You Know What Impacts Your Credit Score? first appeared on Rennie Gabriel.

Rennie Gabriel The Financial Coach

After two divorces and a business failure Rennie went from broke at age 50 to multi-millionaire after learning the three secrets of the wealthy (despite failing high school math). Rennie is a TEDx speaker and he now donates 100% of the profits from his books and online programs to rescue dogs and soldiers. His award winning, best-selling book, Wealth On Any Income has been translated into eight languages.