Credit Score Factors
If you're looking to get approved for a new or used car but are wondering about your credit score, you're in luck. Union City Chrysler Dodge Jeep Ram FIAT wants to help you make the best financial decision for your budget. There several key factors impacting your credit score, and we want to make sure you have all the information you need to make an informed decision.
Our finance team is knowledgeable and ready to assist you today. We want to show you all the factors affecting your score to help get you the best offers for your situation. Whether you have good credit, bad credit, or no credit, continue reading to learn more about factors impacting your credit score and how the experts at Union City Chrysler Dodge Jeep Ram FIAT can help you get the vehicle you want within your budget.
Another factor that lenders consider is the age of your credit history. Customers with relatively short credit histories are considered riskier than those with longer and more established credit histories. Constantly opening new accounts can lower your average credit history and thus lower your score. Keeping your older lines of credit open and paid off shows lenders you are responsible with credit. This factor is 15% of your credit score.
It is also important to have multiple types of credit on your report as well. By having mixed lines of credit, including revolving accounts and installment loans, you show that you have experience managing your finances. Having loans for assets like your house or having student and personal loans is a great way to show that you are able to manage multiple types of loans. This factor is 10% of your overall score.
Lastly, customers should be aware of their number of credit inquires. As mentioned above, when you apply for multiple lines of credit too frequently, you can hurt your credit score and you are seen as a risk to lenders. Credit inquiries stay on your report for up to 24 months, and keeping your credit inquiries is a great way to keep your score high. This factor is also 10% of your overall score.
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