Today I’m joined by special guest David Bell, the vice president of Gershman Mortgage, to talk five factors that affect credit scores. David is an expert in the credit score arena, so he has some great thoughts to share on the subject. 

Most people falsely believe that only two things impact their credit: the timeliness of payments and the frequency of credit inquiries. Let’s take a look at all five of the factors that impact a credit score, broken down by their influence in terms of percentage. 

1. Timely payments (35%). As many already realize, you must pay your bills on time to keep your credit score in good standing.

2. Credit balance vs. max allowable (30%). You don’t have to pay your account off in full every time you make a payment, but it is important to keep your balance below 30% of the maximum amount in order to maintain a healthy credit score. 

3. Longevity (15%). The longer you do something, the better you get at it. Keeping low balances and making timely payments for an extended period of time will definitely help your credit. 

“If you have credit issues, David and his team are willing to assist, teach, and guide you through the process of achieving a better score.”

4. Credit mixture (10%). Having varied accounts is good for your credit. For example, someone who has had 20 credit cards but no other kind of credit has a bad mixture. This factor won’t have as much influence as the previous things I’ve listed, but it’s still something to keep in mind. 

5. Credit inquiries (10%). Avoiding credit pulls when they are necessary isn’t worth it. A credit inquiry may have a slight influence, around five points or so, but it won’t be enough to make a major dent. So, do your due diligence and have a lender take a look at your score whenever it’s important to do so.

If you have credit issues, David and his team are willing to assist, teach, and guide you through the process of achieving a better score. It may take some time, but David and his team are truly there to help.

If you have any other questions for David about this topic, you can reach out to him by phone at (515) 330-2930 or by email at dbell@gershman.com

As always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.