Which of the following will increase your credit score? You’ve many missed or late payments on your credit cards or loans. You recently applied for several credit cards. You have a major credit card, a store, credit card and a Gasoline credit card as well as a student loan in an auto loan. Your credit record goes back years, but all of your current loans, and or accounts were opened recently.
The factors that will increase your credit score among the given options are as follows:
1. Having a major credit card, a store credit card, and a gasoline credit card: Having a mix of different types of credit accounts can positively impact your credit score, as it reflects your ability to handle different types of credit.
2. Student loan and auto loan: Having installment loans like a student loan and an auto loan can also contribute to an improved credit score, as long as you make on-time payments consistently.
3. Credit record going back years: A longer credit history generally reflects a more stable credit behavior, which can positively affect your credit score.
The factors that may potentially negatively impact your credit score are:
1. Many missed or late payments: Consistently missing or making late payments can significantly harm your credit score. It is important to make all payments on time to build a positive credit history.
2. Recent credit card applications: When you apply for new credit, it can result in a hard inquiry on your credit report, which can temporarily lower your credit score. However, this impact is usually minimal and will fade over time if you manage your new accounts responsibly.
To increase your credit score, it is essential to make all future payments on time, minimize missed or late payments, and avoid applying for multiple credit cards or loans within a short period of time.