Know Your Credit History

Build Good Credit

It is important to know what credit providers consider when assessing your application for a loan, so you understand what you can do to improve your chances of a successful application.

Some of the factors considered are:

  • Payment History
  • Amounts Owed
  • Length of Credit History
  • New Credit (number of recently opened accounts, number of credit inquiries, etc)
  • Types of Credit Used

Here are some basic tips to improve your chances:

  • Pay your bills ON TIME.
  • Keep balances low on "revolving credit" (i.e., credit cards).
  • Pay off debt instead of moving it around. Paying off an amount that has been sent to a collection agency will not remove the collection action from your credit report, but it will mark it as paid.
  • Do not close unused credit or store cards as a short-term strategy to raise your score.
  • Do not open lines of credit that you don't need.