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You would have heard on numerous occasions how important a credit score is. Many people do not realize the importance of their credit score until they have been disallowed a service due to poor scores or performance on their credit report. Credit score is something which was earlier not readily available to people, however now a lot of companies tell people what their scores are eventually. If you do not have access to your scores, you can apply for a credit report from the three credit unions and then see how things stand. From looking at your credit report you can get a fair idea of your score and also determine how things stand.

If you don't know what your credit scores are you can check with the authorities and determine it so as to make your financial decisions accordingly. When you apply for a loan or a mortgage or a new credit card, your credit worthiness is high or not is determined by the credit scores. In order to determine your credit score, you have to know what affects it. There are a number of factors which determine how the credit scores turn out. Each of these factors affects your scores differently. 35 percent of your credit score is governed by how you have made the payments. Your payments history, whether you have late fines, missed payments and so on. Another 30 percent is determined by how much money is owed to various creditors.

If you have a total credit availability of say 20,000 dollars and you have used it to the maximum, this affects your credit score as well. 15 percent of the credit score determination is by looking at credit history. How long you have had a credit card for and how many accounts you have in total. The older the accounts and the longer you have used, the better things are for you. 10 percent is determined by any new accounts that have been opened. If you have been trying multiple sources to get new credit, that can impact your credit scores as well.

There are also types of credit that affects how the score is affected. If there is revolving credit such as credit cards, there is more impact on the credit scores than a loan or a mortgage that is taken out by someone. For the best credit scores, make sure you pay your bills on time and keep a low outstanding balance.