The 5 Critical Factors That Affect Your Credit Score And How To Improve It
When was the last time you checked your credit score? Such an integral part of the quality of your life yet it can feel so intimidating and excluding. Well, we at Sencha Credit want to fix that. We want to be inclusive to all, regardless of your past credit history, so you can live a happy life. First, let’s make sure you understand what a credit score is and what defines it.
A credit score is a number that usually ranges from 300–850 that details a consumer’s creditworthiness.
“Creditworthiness is how a lender determines that you will default on your debt obligations, or how worthy you are to receive new credit. Your creditworthiness is what creditors look at before they approve any new credit to you.”- Thomas Brock
Meaning, if you have a high score, you’re more likely to get better rates and vice versa. Every consumer is associated with a multitude of credit scores that are created from a variety of companies, but there’s one that trumps them all. Stemming from the Fair Isaac Corporation comes the universal FICO score, which 90% of the top financial intuitions use to determine your creditworthiness.
Critical Factors
There are 5 major factors that impact your FICO score: Payment History, Amounts Owed…
