Factors that do not affect your credit score

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By: Kedy
on 4th Dec,2013

Your credit score says a lot about you and is referenced in both your personal and your professional life.
Factors that do not affect your credit score


Your credit score says a lot about you and is referenced in both your personal and your professional life. There are many reasons why a credit score may be high or low. However, financial responsibility – which includes paying bills on time and only opening up lines of credit when they are necessary – plays a large role in your specific credit score number.

What Affects a Credit Score?


You should know that there are many things that affect your credit score. On the other hand, there are many factors that simply do not affect your score. Some of the primary examples include race, religion, and marital status. Other factors include your national origin and sex. Other factors that do not play a role in your overall score are your salary, occupation, employer, and your present address. Whether you have previously participated in credit counseling or not does not play any role in determining your score.


If you are wondering what really influences your credit score, there are many different factors to consider. Your payment history, which indicates whether you make payments on time and in full, consists of 31 percent of your score. Just below that, at 30 percent, is the level of debt that you have accumulated. Individuals with a larger amount of debt may experience a lower score. Another factor is the length of your credit history, which comprises 15 percent of the total score. Someone who has a limited credit history is automatically considered to be more of a financial risk among lenders. The types of credit that you have make up 14 percent of your score. Even more helpful is a record that shows you have successfully paid back different kinds of debt. Finally, new credit consists of 10 percent of your overall score.

Understanding Your Credit Score


If you are wondering, “What is my credit score?” you may likely be able to approximate your financial standings based on a few factors. The number is derived from information that is available to credit reporting agencies based on your credit report information. Those who have a good score are likely to repay any debts or loans on time. On the other hand, individuals with a lower score may be saddled with higher interest rates and trouble securing loans.


The credit score range might vary slightly according to each company. However, the numbers generally reflect a similar financial standing. Someone who has a score of 720 or over has excellent credit and may easily be able to secure all kinds of loans. An individual with a score between 680 and 719 has a very good score and can obtain most loans and low interest rates. Numbers that fall between 620 and 679 are considered average, and many people in this category can still get a loan. A score of 580 and 619 is poor and steps should be taken to raise the score as soon as possible. Numbers between 500 and 579 are bad and may mean costly financing terms. Scores of less than 500 are very bad and make any type of financing nearly impossible.

Running a Credit Check


There are many reasons why someone might want to do a credit check. The check is commonly done by individuals who want to look at how financially responsible a potential renter, client, or employee truly might be. Measures must be taken to do credit checks properly and securely. For this reason, anyone who wants to run a credit check must first obtain permission from the person on whom they are running the report.


Your credit score is an important number that has many different influences. Some factors play a significant role, while others do not. Your race, national origin, sex, and marital status are just some factors that have no effect on your credit score. However, your ability to pay bills on time and repay any loans as soon as possible greatly impacts the overall score. If you notice that your score is lower than you would like, you can take measures to raise it up.

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