Sense & Centsibility Blog

Is Your Credit Score Suffering?

credit report and pen on clipboardThere are a many different types of people that come to LSS for financial counseling. There are people who are working and paying all their bills, but getting nowhere on their debt. The balances are not going down. And the frustration is real. These people most likely have very little money in savings and know that one financial hiccup could push them over the edge.

A lot of the people tells themselves they are doing okay because the are paying all of their bills every month. BUT, remember, surviving is not thriving. And your credit score may be suffering. Your credit score is based on five key categories:

  1. Payment History: (35% of your score) Paying your bills on time is huge -- and VERY important.
  2. Amounts Currently Owed: (30% of your score) The amount of debt you owe creditors is a big factor as well. Try and keep your balances in relation to your credit limits as low as possible. Maxing out cards is trouble.
  3. Length of Credit History: (15% of your score) The longer your have credit, the more points you will earn in this section. It's a good idea to not close old, good accounts.
  4. Types of Credit: (10% of your score) Keep a healthy mix of accounts.
  5. Searches for New Credit: (10% of your score) Having too many inquiries for new credit is a red flag and will drop your score.

Take a peek at your credit report today by visiting This site is FREE and SAFE.

If you need to get a hold of your credit card debt, give us a call today at 888.577.2227 or visit our website. We can help. A counselor can look at your whole financial picture -- including your income, expenses and debts -- then give you ideas for getting out of that financial rut.

One of those ideas is a debt management plan (DMP). Our average DMP client comes to us with $32,000 in credit card debt. By year three on a DMP, his/her debt total is down to $17,000. Contact us and take control of your finances today!