Cryptocurrency Q&A
What are 5 components of a credit score?
What are 5 components of a credit score?
Raffaele
Mon Jan 20 2025
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I am trying to understand the different components that make up a credit score. Specifically, I want to know what the five main factors are that influence a person's credit score.
5 answers
CherryBlossomPetal
Wed Jan 22 2025
Payment history plays a significant role in determining your credit score. It reflects your ability to repay debts on time and is a crucial indicator of your creditworthiness.
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BonsaiLife
Wed Jan 22 2025
The amounts owed also affect your credit score. High balances on credit cards or loans can negatively impact your score, as it may suggest that you are overextended or struggling to manage your debts.
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GangnamGlitzGlamour
Wed Jan 22 2025
The length of your credit history is another important factor. A longer credit history typically results in a higher credit score, as it demonstrates your experience and responsibility in managing credit.
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ShintoMystic
Wed Jan 22 2025
New credit inquiries can also have an impact on your score. Applying for multiple credit accounts in a short period can signal financial distress, potentially lowering your credit score.
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GeishaCharming
Wed Jan 22 2025
Your credit score is influenced by five key factors.
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