Having bad credit can determine many of the most important things in your life, including the roof over your head. 

In this post, we will discuss some key factors to ensure your credit goes only in one direction.

Paying bills on time

Credit scores reward a track record of paying on time. A delay in payment by 30 days or more, or any missteps, can damage your credit score and stay on your credit history for up to 7 years. 

Your credit card balances

The amount of your credit card balances, relative to your credit limits, is a big factor. It’s best to avoid using more than 9% of your credit card limit. The lower, the better.

However, keep in mind that $0 is also not good. You must use it, but not too much. 

Your credit age

Everyone likes experience, including scoring models. The longer you have credit, the better your credit score will be. 

In order to build great credit age make sure never to close any of your oldest three credit cards.

Your credit mix

These are the different types of trade lines you have, such as credit cards, mortgages, student loans, and car loans.

The more types of trade lines you have, the better it is for your credit score.

How recently you have applied for credit

When you apply for a card, a hard inquiry may be done. A hard inquiry is a request to check your credit to make a decision about your loan or credit card application. That can shave a few points off your score, but it’s temporary. Having a newly opened account show up on your credit report will also affect your credit score for the short term (up to six months).