San Antonio Consumers: 5 Things That Affect Your Credit

Obtaining an excellent credit rating requires an understanding of the factors that impact your credit score. Whether you live in Bexar County or Comal County, you need to know what is having a positive or negative impact on your ratings.

Payment History

Perhaps the item that is most well-known as a factor impacting your credit is your payment history. The payment history will not only relate to your ability to obtain new credit, but also your insurance coverage options, so you need to ensure that your history shows regular and on-time payments.

Current Debts

Your current debts will also play a role in ratings. You want to keep all of your credit cards below 50 percent of the available limit and make regular payments on all debts. Although San Antonio, Texas residents might take on auto loans, mortgages and similar large debts, the available limits will have a significant impact on scores and ratings.

Type of Debts

While the amount of debts plays a role, the type of debt also impacts the score. The best debts are mortgages and fixed-rate loans. The worst are store credit cards with high interest rates.

Length of Time for Debts or Services

The amount of time since the first credit card, bill or other financial data was added to an account history will play a role in determining scores. Young adults will see lower rates due to the limited information than those who have a long history of making on-time payments.

New Debts

Taking out a new debt will have a short-term impact on scores. Checking the history and increasing the amount of debt accounts for most of the impact.

Getting credit information under control is an important part of successfully increasing the rate. When you talk to an independent agent for help, it is possible to identify changes that will improve the scores and lower insurance rates.