Business World

Calculating your Creditworthiness

Knowing your creditworthiness is very important as it determines whether you get that mortgage, car or insurance. There are various models that are used but there are some common factors in a majority of them. Your payment history is crucial during your calculations. Making payments in time gives you a good score. The amount of outstanding debt you have will also affect your credit score.

A longer credit history is better compared to a shorter one when calculating your credit score. The number of new accounts that are opened is also a determining factor when you are calculating your credit worthiness. During your calculations include the types of credit you have.

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