What Factors Make up My Credit Score?

Whether you are looking to move into a new apartment or get behind the wheel of a new car, your credit score will likely play a significant role in determining what type of loans and spaces become available to you.

At PA Auto Credit, we understand that it can be difficult to buy a car in Philadelphia, PA with a repo in your past. If you have a low credit score, it can feel impossible to secure the funds that you’ll need to further your career, education, or family goals. But where does this number come from?

Your credit score is calculated using the following factors—a higher percentage indicates that the factor plays more heavily into the calculation of your score.

  • Payment history: 35%. Are you paying your bills on time and making the minimum payment on all your accounts? Paying your bills consistently is a excellent indicator to lenders that you only borrow as much as you can afford to pay back, so your payment history heavily plays into the calculation of your credit score.

  • Account utilization: 30%. How much money are you putting on your credit cards every month? If you are consistently maxing out your credit while making only the minimum payments, your credit score will suffer.

  • Length of credit history: 15%. A longer credit history is seen as more stable and established than one that is only a few years old. Over time, you will likely see your score improve even if you are not taking active steps to increase it simply due to the influence of time.

  • Types of credit available: 10%. The mix of account types that you have, including revolving and installment. Having more types of credit available will increase your credit.

  • Number of new cards applied for: 10%. Applying for new cards frequently can signal to credit card companies that you are not seriously considering whether you can keep track of each card’s interest rate and billing date. Skip the in-store credit card applications and save your score!

Even if you have a low credit score, you can still get the financing that you need to step into the vehicle you need for school or work. Give PA Auto Credit a call today at 800-371-1769 to learn more about your options, such as our Buy Here Pay Here program in Bucks County, PA.