Misunderstood Credit Terms: Part 1
It’s important to know common terms in the credit world. From APR to credit utilization, not knowing what these terms mean could cost you big time later. Check them out: APR stands for annual percentage rate. While you may have heard that …
What is Credit Utilization?
Credit Utilization is how much of your available credit you’re using. You calculate it by dividing the total credit card balances by your total credit card limits. Then you multiply it by 100. It will give you the percentage. Do your best …
How Does Credit Mix Work?
Credit mix is a term used to describe the different types of credit that make up your credit report. From credit cards and student loans to mortgages and auto loans, your credit mix has an impact on your credit and makes up …
What’s a Hard Inquiry?
More than likely, you’ve heard of a hard inquiry on your credit report. This is when a business/lender “pulls” your credit report to review your credit history. A hard inquiry can lower your credit score. There’s another kind of inquiry called a …
How Does Payment History Effect Credit Score?
Most of your credit report is made up of your payment history. Your payment history tells lenders what your track record is regarding paying debtors back. This will also determine whether or not you’ll get approved for a loan or not. This …
