Understanding Your Credit Score

Factors Affecting Your Score

Payment History

This comprises 35 percent of your total credit score and reflects both the positives and the negatives of your payment history. You may feel that paying off your revolving credit accounts (credit cards and other lines of credit) is a good thing, but losing a long-standing account, especially one with a good payment history, can hurt your credit score.

Credit Utilization

This comprises 30 percent of your score and ideally, you want your revolving credit balance to be no less than $50, and no more than 30% of your limit. For example, if you have a $1000 credit limit, you’ll want to carry no less than $50 and no more than a $300 balance.

Length Of Credit

How long you have been utilizing credit will contribute to 15 percent of your credit score. This is why it’s important to start building your credit early—and correctly—following the guidelines in point 2 above.

New Credit

New credit refers to opening new accounts with credit limits over $2500, and contributes 10 percent of your credit score. Remember, having multiple credit checks brings your score down, incrementally, so unless you’re certain you’ll qualify, don’t apply! Wait until you have improved your score via other means and then apply.

Types Of Credit

Types of credit is the last 10 percent of your score. There are two types of credit: Installment accounts and revolving accounts. Examples of an installment account would be a car, loan or lease; or a house mortgage. These are fixed amount loans, where your available credit is essentially “maxed out.” When you buy a car for $15,000—the dealership issues credit for $15,000, nothing more than that. So you have used 100 percent of your available credit. When you look back at point two, it should be clear why that’s not ideal. Then there are revolving accounts. Those are your credit cards and home equity lines of credit. These are ideal for raising your credit score because you can utilize a portion of it, instead of the entire amount.


Collections Accounts

Paying a collections account off completely can actually lower your score. An attorney must negotiate the terms of your settlement to help prevent that from happening.


Did You Know? You Could Be Double Paying

You could actually be paying for the same collection—MULTIPLE TIMES. Yes, you read that right. There are no laws that govern how many times your collections account can be sold to another company. Always verify before you pay anything.


Breaking News! You May Be Off The Hook

​​If a company can’t verify that you own the debt, you don’t have to pay it. The burden of proof is on the collector, and they are required to have your signature, amounts of service, original dates, and services rendered.



Trending! But Beware

Don’t fall for “Secured” credit cards. It’s a trap. Unless your limit is over $1500, these cards are not effective. We have better methods of improving your credit.


Talk With Someone Knowledgable

Most bankers, real estate agents, and mortgage brokers don’t know the complex ins and outs of credit. Don’t allow anyone near your credit until you’ve consulted a credit specialist.


Buyer Beware

MOST credit repair companies are an outright SCAM. Watch for companies who only do disputes, don’t have a credit education program, and who don’t use the 3 Steps to Credit Restoration.

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Endeavor Consulting Inc., is not a credit restoration or debt consolidation company.  It is a financial platform built off guiding clients in the areas of: Credit, Debt, Taxes and long term financial planning. Lack of client participation will have an overall affect on the results in an individuals clients progress.


All Credit Services contracted by Endeavor Consulting Inc., are completed, billed and serviced by, Summit Credit Services, INC, in accordance with the Federal Trade Commissions Fair Credit Repair Organizations Act (FCROA). Summit Credit Services, Inc., is a third  party service provider.  Results may vary as each clients credit and financial circumstance are different.