Call Today (888) 667-7157 for a consultation
Services
Payment History
Your payment history is the most important factor of your credit score. Essentially, your payment history acts as a summary for how often you make payments for bills such as your credit cards and loans. This report shows types of accounts you made payments on, if your payments were late or missed, if you have ever had your bills go to collections, and other key factors pertaining to your credit history.
Together, these findings make up your credit score. Of course, you will want to have a higher ratio of good to bad so that you can have a higher credit score. Ideally, paying the minimum balance on accounts by the due date is the best way to maintain a positive credit score.
Majestic Car will review your payment history and see where and how improvements can realistically be made.
Credit Utilization
Credit utilization is another area used to create your credit score. This term is the ratio of your outstanding credit compared to your credit limit. So, let’s say that your credit limit is $1000 and you use $600 of your credit in a month. Your credit utilization rate would then be 60%. Ideally, the lower your credit utilization rate, the better.
Length of Credit
Your length of credit encompasses three areas: how long your credit accounts have been open, how long certain kinds of accounts have been open (revolving and installment accounts), and how long it has been since there was any activity on the account. In most situations, the longer period of time that you have had the account, the more positive of an effect it will have on your credit score.
Credit Mix
Your credit mix consists of the various types of credit and loans you may have. It includes your credit cards, student loans, car loans, consumer holds, and other similar accounts. This information is also used to develop your credit score, and the rationale is that credit mix shows your payment history for these different kinds of accounts.
New Credit
New credit can be a blessing and a curse depending on how it is used. You don’t want to take on too much credit too quickly, for starters. If you’re totally new to credit, new credit makes you risky, and you’ll have to prove that you are reliable through actions like monthly minimum payments. However, new credit can help your credit utilization score, as you’ll have more total credit to work with and may possibly be using a smaller percentage overall each month.
Follow Us
Majestic Car | Odessa, TX 79762
(888) 667-7157
