FAQs

What makes up my credit score?

The list below gives you an example of what is used to calculate your score.

 

  • 35% of your credit score is Payment History -  Paying your bills on time will help out tremendously. Delinquent payments and collection accounts report negatively and affect your score.

  • 30% of your score is Outstanding Debt - Having too many open lines of credit can lower your score. Keep balances low on credit cards and other revolving credit. If you have a $1000 credit limit, you only want to spend $300 on that card. Do not use the whole line. High outstanding debt lowers your score.

  • 15% of your score is Length of Credit History - Accounts open for a long time have a positive impact on your score.

  • 10% of your score is Recent Inquires - Apply for and open new credit accounts only as needed. Do not open an account just because of a retail promotion. Also, every time you attempt to apply for credit cards 5 points will be taken away from your score. Keep new accounts to a minimum.

  • 10% of your score is Types of Credit - Try to have at least 3 different types of credit card, car payment, personal loan, student loan or mortgage.

     

    It’s never too late to clean up your credit and improve your credit score. Keep in mind this debt did not happen overnight, so it will take some time and patience to establish good credit again. When increasing your credit score, you are rebuilding your credit history. There is no quick fix for a bad score, so please be suspicious of any deals that offer you a fast and easy solution. CCCS of Chattanooga can help you understand your credit report and also get some of those pesky debts paid off so you can increase your score for the future.


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