What Determines Your Credit Score?



If you've ever applied for a credit card, student loan, mortgage, or other type of loan, lenders take a look at your credit score and overall credit history to determine if you are a safe bet-meaning you will be able to pay back the loan.

Your credit score is a three-digit number that essentially sums up your credit history. The higher this number, the better position you will be in when it comes to getting favorable terms for a loan. A credit score is determined by five factors.

1. Payment history 35%. This is the largest portion of your credit score. Late payments, especially more than 30 days late, can have a negative effect on your score.

2. Amounts owed 30%. Owing money isn't a bad sign, but if you owe too much, compared to your income, that can be bad.

3. Length of credit history 15%. Usually, the longer your credit history, the better. But, having a short history doesn't mean you can't get a loan.

4. Credit mix 10%. This portion considers the types of credit accounts you have including credit cards, installment loans, and retail accounts.

5. New credit 10%. If you've opened or attempted to open several new accounts recently, this can cause you to be seen as a greater risk.

Are you ready to finance a new vehicle? Visit Griffin CDJR today to view our inventory!

Hours

  • Monday 8:30 am - 7:00 pm
  • Tuesday 8:30 am - 7:00 pm
  • Wednesday 8:30 am - 7:00 pm
  • Thursday 8:30 am - 7:00 pm
  • Friday 8:30 am - 7:00 pm
  • Saturday 9:00 am - 6:00 pm
  • Sunday Closed

Make an Inquiry

By submitting your contact information, you consent to be contacted by telephone about purchasing a vehicle or obtaining vehicle financing. Clicking on the Submit button above is your electronic signature.