PresentationMay2019 - Flipbook - Page 15
The five main credit score criteria.
1. Payment history on credit cards, retail
accounts at stores, installment loans, and
2. Amount of debt. What is important is how
many accounts have balances and how much
of the total credit line is being used on credit
cards and other ‘‘revolving credit’’ accounts.
3. Length of credit history. That’s why parents
should help children establish credit histories
before they go out on their own.
4. New credit. Applying for too much new credit
is one of the easiest ways for people to inadvertently harm their credit score.
5. Credit mix. This takes into account the types
of installment loans, mortgages, retail accounts,
credit cards and finance company accounts.
Amount of Debt