What Affects A Person's Credit Score?

Your credit score is basically determined by who you owe money to and how you pay them back. Your credit score can either go up or down and these days with the amount of debt that people tend to have; their credit rating often goes down instead of up.

However, your credit rating does not just go down if you are in debt, it only goes down if you fail to pay back any monthly payments on time. It also is not only controlled by loans and credit cards, not paying back household bills on time will also affect your credit rating. Generally anything that you have to pay such as your mortgage, car insurance and tax, store cards etc, it can all affect your credit rating.

If you do pay things back on time and if you pay back more than the minimum owed each month then your credit rating goes up. So, even if you do end up in trouble, you can usually rectify the problem again by starting to pay on time, and often paying more than the minimum owed if possible.