Interested to know, “What is a good credit score?” A good credit score rating can certainly prove to be a benefit to you. For those who frequently need credit for their necessities, credit score means a lot. Credit scores are actually based on five major criteria.

Payment history : This is the most important factor which contributes to your credit score. This factor has a share of about 35%. A consistent number of late payments can land you up in trouble. It is important to pay your bills regularly and in time in avoid any such hassles.

Outstanding Balances : this factor has the second largest share of about 30%. It is important for an individual to immediately pay down once his credit limits are nearing the top. This stage is quite responsible for drifting your good credit score down by a few points pretty randomly.

Credit History : This is the third factor which determines the time frame an individual is been holding his credit for. This accounts for a 15% share in calculation of your credit score rating. The total number of credit accounts is also taken into account for this category.<

Type of Credit : As they say everything looks perfect but in a limit. The kind of credit you hold holds a share of 10%. If you have a mix of different types of credit, then you are considered a responsible investment. However too much of a certain loan say mortgages or student loan is looked down by financial institutions and it affects in a negative way to your free score.

Random Credit Inquiries : in case you apply for credits after very random intervals of time, it gives a negative vibe to your credit scores since this category contributes about 10% for the calculation of the credit score. It is advisable to have a decent amount of time gap in order to have a good credit score.

You can check “my credit score” in any of the credit card bureaus. In addition, it is very essential to know the credit score range which is acceptable by loan lending institutions and banks.