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How to Determine Your Credit Score | Killeen, TX
You know that you need to have a good credit score in order to get the best finance offers available for your new vehicle purchase or lease. What you may not know are the five key factors that contribute to your credit score overall.
Your payment history makes up a large portion of your credit score at 35 percent. This is exactly what it sounds like: A history of your payments over your entire financial history. If you make late payments, you can expect to see your credit score take a major hit.
The amount of money that you owe also makes up 35 percent of your credit score. Part of this includes your credit utilization ratio — as a general rule, you only want to use about 30 percent of your available credit line on a credit card.
Length of History
Having a good credit history makes up 15 percent of your credit score. This means having a long history of making payments on time, as well as paying off debts and responsibly managing new lines of credit.
Speaking of new credit, 10 percent of your overall credit score is determined by the amount you have in your name. To avoid taking a hit here, you want to limit the number of new cards and debts you take on in a short period of time. Allow a new credit card to mature for a year or so before considering opening up another.
Types of Credit
Having a wide range of credit is good for your overall score, making up the last 10 percent. To make the most of this, you want to try and demonstrate your ability to pay off different kinds of credit, including mortgages, car loans, student loans, and credit cards.
If you need help boosting your credit score or you’re not sure whether you can get the new Nissan you’ve got your eye on or not, stop into Bates Nissan and our financial experts will help get you on the right path.