What makes up Credit

Here’s what makes credit:


Credit Age – The average age of all open accounts

Credit Usage – It is your current balance divided by your credit limit.

For example:

If you owe $100 on your credit card and your balance is $1000. This means you have a credit usage of 10%.

Payment History – It calculates how often you pay on time.

Derogatory Remarks – These are any dings on your record. Like someone sending you to collections, or a foreclosure.

Total Accounts – The total number of accounts you have either open or closed.

Hard Inquiries – These are the number of applications for credit. These can remain on your credit up to two years.


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