Our credit profiles are comprised of variables that some consumers are unaware of that can affect our purchasing power, place of employment and perhaps character.  No longer is sitting across from the desk of a lender sealing a deal with a hand shake the case.  We consumers are all judged by content of our credit profile which is the derivative of our beacon score.


Your “payment” history counts for 35% of your credit score.  Why is paying your creditors on time important?  Paying on time increases your credit score and increases your chances for being hired for employment, or approved for a loan.  In some cases employees with seriously delinquent credit history is a higher risk for the employer and has caused individuals to lose their job.


30% of your credit history involves the amount of money owed to creditors.  At times having too much credit can hurt your score.  For example, if 45% of your income is being allocated towards “debt owed”, it is possible that your credit score will decrease.


10% of your score counts for “new credit”; applying for too many loans can hurt your score.   Research shows that consumers are a higher-risk when applying for credit within a short period of time.  The correct mix of credit counts for 10% of your credit score and 15% counts for the length of your credit history.


Until all of your credit cards and various loans are paid in full and you are operating on a cash only system, use these tools to help you to manage your debt and maintain a clean credit report and high credit score.


Please leave a comment and share your thoughts about this chart.  Do you think consumers are being rated fairly according to the current system being used to monitor our financial management?


E-mail me at christineroebuck@livemylifedebtfree.com and like my Facebook page at Live My Life Debt Free.

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