Credit Score 101: What Does and Doesn’t Actually Matter

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Understanding your credit score is essential not only if you need to finance a major purchase, but it can also be important when securing insurance, renting a place to live, and even getting a new job. Knowing which factors impact your numbers and which may not matter at all can help you put the focus where it needs to be so you can make the most of your credit score. Xpress Cash wants to help you do that. Read our primer on the factors that impact your credit score, then contact us if you have any questions about getting the financing you need to take the next step in life.

The Important Factors

Regardless of whether it is FICO or another agency, they probably use the following information to formulate your credit score:

  • Payment History. Paying your bills on time will result in a high credit score while late payments will knock your numbers down.
  • Number of New Accounts. Having multiple credit accounts isn’t usually a problem, but opening several in short succession is a red flag.
  • Outstanding Balance on Current Accounts. Owing to much money on the accounts you currently have can make you seem like a credit risk. A recent auto repossession can also affect your chances of being approved for a car loan.
  • Length of Credit History. The longer your credit history, the easier it is for creditors to see you as a low-risk client.

Surprisingly Unimportant Considerations

Factors that are not used to determine your credit score include:

  • Your Spouse’s Spending. Unless your name on is on the accounts, your spouse’s spending activity doesn’t impact your credit score.
  • Monthly Utilities. Most utility companies don’t report to any of the main credit bureaus unless you default on your account.
  • Rent. Like utility companies, most landlords don’t go to the trouble of reporting your payment activity unless you skip out on rent.
  • Income. While you may be required to supply income information when applying for credit, it doesn’t impact your credit score.
  • Debit Card Activity. Your debit card is connected directly to your checking account and is not a line of credit, therefore doesn’t impact your credit score.

Let Xpress Cash Help

Calculate your credit score and get access to the emergency financing you need at an Xpress Cash location in Michigan, Wisconsin, and Idaho and see how easy and affordable it is.