What Determines Credit Score? Find Out What Impacts Your Credit and What to Keep in Mind
For those that don't know, your credit score is essentially a score that is determined through a complex mathematical model to reflect your financial reliability or credit risk. In other words, it's a number that indicates the likelihood of you repaying a loan or making payments on time.
There are a lot of factors that influence your credit score, but the two most important elements are how you pay your debts and how much debt you owe. So, if you have a history of making late payments on loans, a past bankruptcy, or a court ordered you to pay money in result of a lawsuit, your credit score will be negatively impacted.
FICO® Scores are the credit scores that most lenders look at to help determine your credit risk, and according to Fair Isaac Corporation that calculates the score, a group of aspects carries different weights to affect your credit score.