one of the most influential factors in a person’s credit score is their payment history
Miami, FL (PRWEB) March 05, 2017
National Debt Relief recently shared in an article published February 20, 2017 some great insights to help consumers understand their credit score better in light of their debt obligations. The article titled, “The True Effect of Debt On Your Credit Score” aims to educate consumers about their score in a bid to understand it better.
The article starts off by sharing how important credit score is to a lot of people especially when they start looking at their finances. A consumer’s score will be one of the important factors lender will consider when they are trying to take out loans. It can be anything from housing loans to auto loans and even student loans.
The article explains that one of the most influential factors in a person’s credit score is their payment history. As such, consumers need to develop a plan in paying down their debts on time. Failure to make on-time payments can result to a lower credit score. It can also increase the total payment amount due to penalties and other fees.
The credit utilization ratio is another important factor in helping increase and maintain a good credit score. The idea is not to use too much of the available credit. Maxing out credit can have a negative effect on a person’s credit score. It can also increase the chances of having to carry over balances to the next month increasing the payment amount from interest.
Stability is one of the things that creditors look for and the age of a consumer’s account is a good barometer for lenders and even credit reporting bureaus. To read the full article, click https://www.nationaldebtrelief.com/true-effect-debt-credit-score/