Credit RatingYOUR CREDIT CARD RATING includes a number of factors which you should be aware of. Following are the main points that lenders consider in an attempt to measure the risk associated with each individual.

Payment History: No surprise here. If you have a record of making payments on time, you already know this is a good thing. But if your record shows delinquent payments your credit rating will go down.

Risk/Longevity: If you’ve been at a job and in your home for longer than 2 years (the longer the better), lenders view this as a sign of stability and lower risk.

Risk and Debt Control: Lending more money to someone who is living beyond their means is considered a higher risk than lending to someone who has their debt under control. One rule of thumb for non-mortgage credit payments each month is that the payments should not exceed more than 15 percent of the borrower’s after-tax income.

Risk and Balance Limits: The old adage that “It’s easier to get a loan when you don’t need it” is reflected here. The closer your credit cards are to their maximums the greater risk associated in your credit score.

These are not all the factors that are reflected in your credit score but they are among the ones that would have the most awareness of and can exert the greatest control over.

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