Your credit report overshadows every part of your life. Whether it’s a bank, insurance company or mortgage lender, your credit score is how they figure out whether you’re likely to miss payments or default on a loan. Now, it’s not uncommon for landlords and employers to check your credit before approving an application.
No one is exempt from the impact of their credit score.
There are five factors that determine a borrower’s credit score – payment history, debt balance, credit history, types of credit and new credit inquiries – and each factor carries a certain weight or percentage. Together, they determine a person’s credit score. Knowing which factors carry the most weight may help you the next time you’re thinking about applying for a new credit card or just paying the minimum on your balance.
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