What Affects Your Credit Score?

June 25, 2021 | Emma Frost

what affects your credit score

Understanding what affects your credit score is the first step toward increasing it and maintaining a clean record. But many people don't know what's causing their scores to drop. Plus, we're not always taught how credit works in school. Instead, most adults are left to learn all this the hard way.

Things like missed payments and late fees can really harm your score yet can be avoided using title loans online. Let’s have a look at how this can be done.

Why Your Credit Score Matters 

To learn what affects your credit score the most, you must understand why it all matters. Not only is your credit rating how lenders measure your ability to repay a loan, but employers, insurance companies, and other entities also use it to establish your credibility. Plus, here are two other reasons why it's so important: 

1. You Never Know What Might Happen In Life

That means you may need a decent credit score to get out of financial trouble if/when it happens. And since nobody can predict the future, having a backup plan probably isn't a bad idea either. 

2. Your Rates May Be Affected By Your Scores

Some lenders may charge you a premium for borrowed money when your credit score is too low. Also, your repayment schedules are generally stricter with a lower score, which is usually the last thing you need. 

When the average person in the United States has a credit score of 700 or less, it's no wonder why learning these things is essential. Unfortunately, many consumers don't understand its significance until it's much too late. Don't let that be your story too. 

What Affects Your Credit Score The Most 

Let's cut right to the chase. This is what affects your credit score the most: 

late payments

1. When You Don't Pay Your Bill On Time

It doesn't matter where you get your goods or services; everyone wants their fair share when it's due. If you pay late, you incur more than just an extra fee. The creditor also reports that activity to the three major bureaus (Experian, TransUnion, and Equifax), which results in a significant drop in your score. 

2. When You Ask For Too Many Loans At Once

There are soft inquiries and hard inquiries. Hard inquiries mess up your credit pretty quickly, and just a handful of them can make your scores plummet. They can communicate desperation to some potential lenders, and whether you get approved or denied for them doesn't really matter.

3. When Your Income Gets Too Low

You'll notice how some lenders ask for income updates often. That's because your debt-to-income ratio is an important factor in your overall credit score. It shows you might struggle to pay your bills on time, making you a liability to most lenders. 

DID YOU KNOW: Most people in the U.S. have less than $3,000 in their savings account for emergencies. 

How To Improve Your Credit Score Fast 

Now that you know what affects your credit score the most, you must learn how to boost it. So, here's what you need to know. 

1. Pay Off Some Of Your Biggest And/Or Oldest Debts

Your oldest debts affect your credit scores the most, then come the biggest. Thus, paying those off can increase your scores instantly. However, keep in mind that the length of your credit history also plays a role in your overall score. 

2. Submit Disputes For Incorrect Information On Your Report

Not everything on your credit report is always correct. You get one free look at your report each year by law, so don't forget to check it for incorrect information. If you find some, be sure to submit a dispute ASAP. 

3. Use Credit-Friendly Loans From Now On

You don't always have to incur an inquiry just to get pre-qualified or approved for a loan. In fact, you can get title loans Utah offers within the next 24 hours as long as you meet the basic requirements in the state. 

NOTE: You must be at least 18 years old to qualify for a title loan in Utah. 

get a title loan online

Tips For Getting A Title Loan Online In Utah 

Getting a title loan online in Utah is easy. Just follow these two simple steps:

Step 1 - Start Online

Fill out the short intake form on Utah Title Loans, Inc. to get the process started. A loan representative will then contact you to schedule an appointment. During the appointment, the representative will review the following documents, and if you qualify you can get your cash within 30 minutes or less. 

Step 2 – Make Sure You’ve Got The Required Documents

Keep in mind that the representative can meet you at the nearest store or come to your location if that works better. Either way, have the following items ready: 

  • Your valid driver's license or a government-issued photo ID.
  • The lien-free title to a vehicle that's registered in your name.
  • The vehicle itself for the agent to inspect.

DID YOU KNOW: You can get a title loan online in UT for as much as $15,000

Avoid Harming Your Credit With An Online Title Loan Today

Knowing what affects your credit score is only the first step. The next step is protecting it, which means that when you’re in need of cash, you can opt for a title loan that has no impact on your credit score. Submit your form today to find out if you’re eligible.