What makes up your Credit Score?
Banking Basics US Credit Card

What makes up your Credit Score?

Rupali Amin

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What makes up your credit score?

Your credit score is made up of various factors. Your payment history and amount of credit owed are the most important ones in determining your credit score and make up most of it. Other factors like length of history, types of credit (loans, cards), and new accounts make up for the other part.

Source: CNN Money

What’s worse than losing your credit card? It’s not paying your credit card bills on time. (At least when you lose it, you can freeze it instantly.)

How does late bill payment affect your credit score?

If you’ve delayed your credit card bill payment and therefore have a poor credit history, here’s what you might lose: your ability to earn a livelihood, your ability to socialize, and your freedom of movement among many other things. It takes years to build your credit score and history in the U.S.

So, if you find it irritating when banks hover over your head to ensure you pay credit card bills on time, believe us when we say, they do it for your own good (for a change).

Read up more about how late bill payments will hit your credit history softly as well as in the long-term.