Looking for good personal credit? Here’s how the scores get calculated.

You can get funding for  0% APR ‎for 12-18 months with good personal credit. There. Now we bet you’re paying attention and interested in how you can get a better score or even start putting one together. The first step is understanding what goes into a credit score.  Here are the ingredients you should be paying attention to.

Payment History  

We put the most important one upfront so you wouldn’t miss it. In fact 35% of your overall personal credit score is payment history. If you make late payments or are delinquent on accounts this will damage your overall rating and reduce the chances you’ll get that loan you’re looking for.

Amounts You Owe

It stands to reason if you want have a good personal credit score, you’ll need to manage your money. That’s why one of the indicators is the amount you owe when a lender looks at your score. The number of different accounts that you have with balances in them is a relevant factor.The amount that you typically put down on installments is factored in too.

How Long You’ve Had a Credit History

The average age of the various accounts that you have in your portfolio makes a difference. You’ll need to look at the age of the oldest account as well. It’s usually the case that the longer you have had an account, the better for the possibilities of getting more credit.

Kinds of Credit

if you want to have good credit score, you should be managing different types of credit so the overall portfolio looks balanced. Having a mortgage, revolving and installment payments all mixed together is a good idea.

New Queries

If you apply for several revolving loans or credit cards at the same time, you could certainly be hurting your overall personal credit score. These types of inquiries can stay on these records for several years.