Lenders use your credit score to help them determine whether they are happy to offer you credit, whether that\u2019s a loan, mortgage or credit card. The higher your credit score, the more likely you are to get accepted and the more likely you are to secure the best interest rates. This makes it important to understand what can cause your credit score to change and the steps you can take to improve it if necessary. <\/p>
Here’s what you need to know.<\/p>
Below is a list of 5 things that could affect your credit score:<\/p>
A number of factors can have a positive impact on your credit score. Lenders want to see that you have borrowed responsibly in the past and have managed credit over a long time. Take a look at the following:<\/p>
Likewise, several factors can drag your credit score down. These include:<\/p>
There are also a number of factors that won\u2019t have any impact on your credit score. These include:<\/p>
There are many myths about what affects your credit score, so we\u2019ve outlined some common misconceptions to help you understand what\u2019s fact and what\u2019s fiction. <\/p>
Understanding your credit score and what affects it is important if you want to apply for any type of credit, be it a loan, credit card or mortgage. The lower your credit score, the less likely lenders are to offer you credit. Or if you are accepted, lenders will likely offer a higher interest rate, and you might not be able to borrow as much as someone with good credit.<\/p>
Check your credit score regularly to estimate how likely you are to get accepted for credit before you apply. If your credit score is low, there are steps you can take to improve it, and you should see an improvement in your score within 6 to 12 months. <\/p>