A credit score is a prime element for the lenders to assess your ability to handle the debt. Having a good credit score means that you can handle the loan or debt properly. The basic principle of credit score is that the more credit availability you have, the better credit score you will enjoy. Anything above over 700 is considered good and below 500 poor. There are some factors that directly influence your credit score. Let us have a quick look into them before you look for bad credit help in Alberta, Calgary, Edmonton and Lloydminster.

Factors influencing your credit score

1.      Utilization of credit

The availability and usage of credit influence your credit score. If a person has high credit and uses it regularly, he/she will enjoy a better credit score than the one who has low credit but does not use it in the right way.

2.      Payment history

Payment history is another crucial element that alters your credit score. You will maintain a good credit score if you make regular monthly payments for your credit cards. If you are unable to make payments then it will have a negative impact on your credit score. So, try to make regular payments every month.

3.      Type of credit

The type of credit further influences the credit score. Having several credit cards will have a particular impact and having a combination of credits will have a different effect on your credit score. A good advisor will always analyze all your credit types before lending you the best solution.

4.      Stability

Having financial stability will affect your credit score. Living at a particular address for a given time, working status with your employer, and other factors influencing your financial picture will have an effect on your credit score.

5.      Credit length

The length of holding a credit will have an impact on your credit score. If you don’t have a long history then you will enjoy a good score. In simple words, if you had credit for a short time then you will be able to maintain a good credit score.

6.      Inquiry

When any lender or bank inquires about your credit score it is recorded in your credit report. When these parties do the inquiries then they have a certain impact on your credit score.

Final Verdict

To maintain a good credit score, you should keep these fundamental factors in the back of your mind. However, it is not mandatory to work on all factors to maintain a healthy credit score.  Sometimes, having a bad credit score can become beneficial. For example, when you plan to purchase a car, a bad credit score can help you score a lower interest with your lender. But, in some situations, you need to have a good score to get better terms. So, it is beneficial to seek expert bad credit help in Calgary from reputed company. Credit720 will help you by providing expert advice and best solutions in debt settlement in Calgary, Edmonton, Lloydminster, and Alberta. Contact us to get detailed information on our plans.