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How is my credit score determined?

  • 10% is type of credit used
  • 35% is payment history
  • 30% is amounts owed
  • 15% is length of credit history
  • 10% is new credit opened

What are the benefits of a good credit score?

Lower interest rates on loans, which will save you money in the future. Also, the information will determine whether or not you may be approved for a loan or insurance. The better your score, the lower price you pay.

How do I improve a poor credit score?

The first step is to make sure your credit report is accurate. Every year, you can pull a free credit report at

How long will negative items stay on my report?

Foreclosure will stay on record for 7 years and can negatively impact a score between 85-160 points. Chapter 13 bankruptcies stay on file for 7 years and Chapter 7 bankruptcies for 10 years. Both reduce your score by about 130-240 points. 30-day mortgage delinquencies reduce a credit score between 60-110 points, and the impact is higher for 60- and 90-day delinquencies.

What are some tips for maintaining a good credit score?

  • Set up a periodic bill-paying schedule to ensure on-time payments.
  • Develop a budget. Try free budgeting software online like
  • If you’re having trouble making ends meet, contact your creditors to try to modify your repayment.