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Financial Crossroads California Lists Top 5 Factors that Affect a Credit Score


SANTA ANA, CALIFORNIA -- Financial Crossroads, a leading debt settlement company located in Santa Ana, California, has published the top 5 factors that affect a consumer’s FICO score. Due to the difficult economic and credit market environments, Financial Crossroads is seeking to educate consumers about their scores and what can be done to improve them.

“Lending standards have tightened considerably in the past 12 months,” said Liz Baker, owner and co-founder of Financial Crossroads California.

“It’s important for consumers to know how credit scores are determined so they can be proactive in maintaining or restoring them,” she added.

Financial Crossroads’ list includes:

- Payment History. One of the most important factors in a credit score is whether or not bills are paid on time. Payments 30 days past due are typically reported to all three bureaus and will negatively impact a score.

- Revolving Debt Balances. Another important factor is the amount owed on revolving debt. Balances at or near credit limits will have a negative impact on one’s score. “If at all possible, we recommend keeping balances below 40% of the total credit limit,” said Baker. “Anything over 50% will start to negatively affect a score.”

- Length of Credit History. Consumers with new or recent credit profiles will be affected. This is one factor that is out of the control of consumers and Baker noted that maintaining a satisfactory credit history over a prolonged period of time is the only solution to improving this scoring component.

- Types of Credit in Use. Excessive revolving debt (credit cards or other unsecured lines of credit) will typically have a negative impact on one’s score. Baker recommends no more than two open revolving debt accounts at a time.

- Inquiries. Although a minor component to the overall score, excessive “hard inquires” on your credit profile will begin to drag down a score.

About Financial Crossroads, California

Located in Santa Ana, California, Financial Crossroads is a member of The Association of Settlement Companies (TASC) and offers solutions and programs to Americans looking to get out of debt. With its main offices in California, Financial Crossroads uses a multi-faceted approach to assist clients to become free from credit card companies and other unsecured debtors in a relatively short period of time. For more information, visit or call 1-888-912-3328.

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