As you already know, your credit score is an extremely important three digit number (an 850 credit score equals a perfect score). It sets the stage on whether you will get approved for a loan, and the interest rate you’ll pay on a new home loan, refinance or credit card.
So, what if I told you there’s a tool out there that can show you what’s holding you back from having a higher credit score. And, what if I told you it’s free? I mean, there’s seriously something out there that can help you potentially get approved for a loan and a better interest rate. You want to know what it is, right? Well, there’s no need to wait any longer, it’s called Score Analysis and yes, it’s available for free inside Quizzle.
With Score Analysis, you’ll find out the top four reasons why YOUR score isn’t higher and see what you can do to fix the issues over time.
Quizzle uses the VantageScore® 3.0 credit score. Your reason codes and VantageScore Solutions are what powers the Score Analysis tool. Quizzle matches each reason code to one of the categories used to calculate your VantageScore credit score. Understanding these categories can help you make better financial decisions in the future and may even help you improve your credit.
Here’s a closer look at what influences your credit score in Quizzle.
Payment History – The most influential category when it comes to your VantageScore credit score. Your payment history is a record of your payments over time. Lenders and creditors look to this as a sign on whether you will make late payments or miss them altogether.
Age & Type of Credit – Each account on your credit report has a “date opened” field. This is the age of your account or how long it has been open. As for type of credit, the different kinds of credit you have impact your report and score. For example, credit card, mortgage, and auto loans.
% of Credit Limit Used – This is otherwise known as utilization and it evaluates the overall usage of your available credit. Experts suggest keeping your utilization under 30% on each of your accounts.
Total Balances/Debt – This is the total amount of money you owe to each of your lenders.
Recent Credit Behavior – Opening new accounts and the credit inquiries for a mortgage or credit card, all fall under this category.
Available Credit – Your available credit is the amount of credit that’s available to you at any given time. It’s also tied to your percentage of credit limit used, or utilization.
Now that we know what makes up your credit score in Quizzle, let’s check out an example how Score Analysis works using my credit score in Quizzle.
1.) The balances on your accounts are too high compared to loan amounts
2.) Open real estate account balances are too high compared to their loan amounts
As for reasons 1 and 2, I bought a brand new house and a whole lot of brand new furniture to fill it a few months ago. I expected my credit score to take a hit and my expectations were right on par. Now, I need to pay down my mortgage and my furniture debt, on time, every time each month. It’s going to take some time (especially on my mortgage), but every responsible payment helps. At times, I’ve also made an extra payment or two on my furniture when I can.
3.) The date you opened your oldest account is too recent
My oldest open account is my student loan account. As my oldest open account, it sets the length of my overall credit history and you can’t change history. As Score Analysis suggests, I have to be patient and my score will benefit as my account ages.
4.) Available credit on your open bankcard or revolving account is too low
My available credit limit is too low because of the big furniture purchases I mentioned in 1 and 2. This reason code highlights the fact that carrying higher balances can affect multiple categories. But, as I work hard to pay down those balances, that one action will have a positive affect across the board.
All in all, Score Analysis is an awesome tool that comes in handy if you’re looking to improve your credit. Now that I understand what I need to do, I can take the first steps to achieving better credit. Do you know what’s holding you back from having an 850 credit score? Find out now with Quizzle’s Score Analysis tool.
VantageScore® is a registered trademark of VantageScore Solutions, LLC.