Keeping your credit score up can help you avoid bankruptcy. On the other hand, if you have already struggled with bankruptcy, boosting your credit score can help you get back on track. The following post lists factors that affect your credit score. 

Your credit card payment history

If you continuously miss credit card payments or frequently pay the bare minimum, your credit score can take a serious hit. A one-time missed or late payment will not affect your score as much as a number of missed payments in a row. Similarly, if you always pay your card on time, your credit score will grow. Payment history is the most important factor in determining your score.

Your revolving utilization

The amount of debt you carry each month is important. If you are constantly maxing out your card, or using high amounts of your total limit, your credit score will likely decline. Using a lot of your total credit amount each month can make you look like a risky borrower.

Your length of credit

The longer you have a credit account open, the more it will benefit your credit score. Having a long credit history will help your score but having a short credit history will not necessarily make it go down.

Your mix of credit

It may seem counterintuitive, but having multiple avenues of credit can help boost your score. For example, having your mortgage and bank cards all in one can be of benefit as long as you are able to pay off your card each month. However, if you are not able to make the payments, your score will likely go down.

New credit you acquire 

Opening up a lot of new credit lines at the same time can make your credit score take a hit. Having many lines of credit opened at once, or in a relatively short time span, can make it look as though you are financially irresponsible.

The five factors listed above have a significant impact on your credit score, which is why it is beneficial to keep them in mind when you are attempting to build and maintain credit.