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creditCredit Scores:  Learning the Secrets to Getting and Keeping an Excellent Credit Score

There are several factors taken into account that help determine your credit score. The factors making the largest impact are listed below. Remember that these factors vary in how strongly they impact your credit score.

Here are the top factors that lower your score:

1.There are too many late payments posted on your credit report. 

Payment history is a significant factor in the credit scoring process. Regular on time payments make you appear more stable and creditworthy to potential lenders.
On the other hand, late payments indicate that you may be in financial distress. If you often late with  making your payments, consider internet banking and set up an automatic payment process.

2.There was recently a late payment posted on your credit report.

Payment history is a significant factor in the credit scoring process. Regular on time payments make you appear more stable and creditworthy to potential lenders.
On the other hand, late payments indicate that you may be in financial distress. If you have trouble remembering to make payments, consider internet banking and set up an automatic payment process.

3.Your revolving account balances are too high.

High levels of debt can signal to potential lenders that you are spending more than you can afford. It is a good idea to use your credit cards regularly but remember to keep your balances below 35 percent of your available credit limits. If you have balances above 35 – 50 percent, you could see your credit score start to drop.

You may want to consider raising your limit or changing your charging habits.

4.There are too many consumer finance company accounts on your credit report.

Having too much available credit can sometimes harm your credit score.
Lenders may feel that you have the ability to spend more than you could potentially pay back. Avoid closing too many accounts – especially the oldest accounts on your credit profile – because it could harm your credit score.

See Understanding your credit at Financial Consumer Agency of Canada

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