BUILDING CREDIT IS A GAME OF CHEST

[Evang. Felecia Spaulding]

CREDIT EXPERT REGINA LITTLES:

CAN YOU BUILD CREDIT WITHOUT USING CREDIT CARDS

Without Credit Cards

Payment history is 35% of your score.

Length of credit history is 15% of your score.

Amounts owed is 30% of your score.

New credit is 10% of your score.

Types of credit 10% of your score.

The person that builds credit without credit cards will not get the full 35% as noted in the P-Payment history. This is related to the revolving section of the credit file. They may not get the full 30% as noted in the A-Amounts owed. As you can see, these are the two areas that are graded heavily.

The amount owed compared to the credit limit is how the credit score is computed. This is called utilization. Credit utilization is calculated by the total credit available divided by the total debt. So, if you don’t have any CREDIT LIMIT available “credit cards or revolving trade lines”, you will not get very many points in this section.  PLEASE FOLLOW THIS LINK AND READ MORE!!

 CAN YOU BUILD CREDIT WITHOUT USING CREDIT CARDS