How To Determine Your Credit Score?
Credit Mix: Credit mix is rated to be approximately 10 percent only. Credit mix such as credit cards, store accounts, installment loans and mortgages, is not usually a key factor for your credit score. It reflects the mix of different forms of credits.
While too many types of credit card are not necessary, but a healthy mix improves your credit score as it indicates how responsible you are and how capable you are in managing your finances.
New Credit: The last factor that is to be considered to have any impact on your credit score is the New Credit. It is should be nearly 10 percent.
New Credit refers how many new accounts you have. If you have opened several accounts in a short period of time then the score assumes that you could be in a greater risk. You should not open several new accounts in order to make a good credit score.
It becomes difficult for lenders to determine whether to lend you or not when you are under a credit risk. So, you should also give importance to this factor for getting a better credit score.
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