The article below was composed by a guest contributor. If you are interested in writing for My Money Design, please feel free to contact me.
If you’ve ever been curious about what factors determine your credit score, then you’re not alone. Lots of people have different opinions and misconceptions about how that mysterious number they assign to you gets calculated.
We all know that in general your credit score has a lot to do with:
- Not running up huge piles of debt
- Defaulting on your payments
- Your income level
- Your payment history
But did you know that there could be a lot of other factors that go into it as well?
An Infographic About What Factors Determine Your Credit Score:
There is a great infographic from Aqua about how different statistics and factors can influence your score, and what you can do to improve your credit rating.
Credit is definintely somehting to be taken seriously. Your rating will follow you around for life and can haunt your ability to get the things you need like a good house, car, loan, etc. It’s very easy to make mistakes and slips that can tarnish your score and leave you with years of work to bring it back up.
Check out these factors and let me know what you think:
Image courtesy of FreeDigitalPhotos.net