Negative Score Factors

The date that you opened your oldest account is too recent.
Your oldest account is still too recent. A credit file containing older accounts will have a positive impact on your credit score because it demonstrates that you are experienced managing credit.

What You Can Do
Don’t open more accounts than you actually need. Research shows that new accounts indicate greater risk. Your score will benefit as your accounts get older.

The total of all balances on your open accounts is too high.
The total that you owe on all your accounts is high. Maintaining high balances has proven to be risky behavior because you don’t have much credit available should it be needed, creating a greater chance of becoming overextended. People with the highest credit scores keep their account balances low.

What You Can Do
Whenever possible, pay down balances on your accounts. Over time, this will have a positive impact on your score.

Balances on bankcard or revolving accounts too high compared to credit limits.
Bankcard accounts include credit cards and charge cards from a bank and are frequently revolving accounts. Revolving accounts allow you to carry a balance and your monthly payment will vary, based on the amount of your balance. You have bankcard or revolving accounts in your credit file with balances that are high compared to the credit limit on the account, which is a proven indicator of increased risk.

Total of all balances on bankcard or revolving accounts is too high.
The total combined amount you owe on all of your bankcards and revolving accounts is high, a sign of increased risk. People who carry balances on multiple bankcards or other revolving accounts have reduced available credit to use if needed, creating a greater chance of becoming overextended.

What You Can Do
Pay down balances on your accounts and keep them below 30% of the total credit limit on that account. Over time this will have a positive impact on your score.

Leave a Reply