If there is a large balance on a loan or your credit card, this can lower your credit score. How much you owe is very heavily weighted in determining your number.
When you open your first credit line, it’s likely your score is worse than after a few years of having an account. The longer the amount of time with an account open increase your credit score because it proves you can be depended on due to your experience.
There are multiple types of credit accounts to have open, including revolving and installment. The more diverse your credit lines, the better.
If you’ve had a lot of credit inquiries and recently opened a lot of credit accounts, your credit score can falter. It might seem suspicious that you have opened so many credit lines in a short amount of time.
For any other questions you have regarding your credit score, feel free to contact Pantili Mitsubishi. We’re happy to help!