Five Things You Can Do to Get by with a Bad Credit Score

A good credit score makes life a lot easier. However, that doesn’t mean that your life is over if your credit isn’t good. Not only are options available when looking for an easy cash loan with bad credit, bad credit can be rebuilt into good credit over time.
Credit Report
Specifically, your credit score will increase while you take advantage of these five tips for dealing with a bad credit score:

Pay off outstanding debts

Your debt to income ratio is an important factor in evaluating your credit score. If you have large payments you need to make every month on credit accounts but don’t make a lot of money, your credit score is going to suffer.
You may be able to boost your credit score relatively quickly if you can pay down some debts. Focus on paying off debts over time if you’ve seen that your credit is bad and need to improve it as quickly as possible.

Make payments on time

Making payments is not enough when it comes to maximizing your credit score. You also need to make those payments on time if you want to avoid dings to your credit history. Every time you make a late payment, it’s going to count against you. That’s why you need to stay on top of approaching payment due dates. These days, you can set your smartphone to remind you of upcoming payments or even have your creditors send you reminders via email or text.

Avoid attempting to take out more loans or open more credit accounts

Another thing that could potentially cause negative marks on your credit report is frequently applying for financing. The less often you apply for a loan, the stronger your finances are going to look to prospective lenders.
Opening up a new credit account will cause credit to take a small hit, but that’s not all. It could also increase your overall debt load so that it will be more difficult for you to keep up with payments.
To enjoy the best possible credit score, you should make every effort to avoid seeking financing unless it’s absolutely necessary or you may find yourself needing loans with bad credit.

Pay for things in cash

Paying for things in cash can help you to minimize your debt load over time. Putting things on a credit card will increase your overall debt. The bigger your debt gets, the more difficult it is going to be to keep up with it. Remember that employers run credit checks. This means that you need to do everything you can to minimize your debt loan to make yourself more easily employable.

Increase your income

If your credit is not good, in most cases it indicates that you don’t have enough money coming in every month to pay off all of your expenses. You can make your credit better by increasing your income. This will make it so that you have more money available every month to meet your financial obligations and hopefully set a little extra money aside for savings. Building up your savings after you pay off all your bills every month is important if you’re trying to raise your credit score.

How to Build Good Credit as a Student?

College is the best time. College students have all kinds of freedom. They can live away from their homes if they wish to, always up for fun and get invited to house parties to enjoy binge drinking with their pals.
College is also the best time to build a good credit. Improving credit score is the quickest way to get financed. A good credit will pay you off for the rest of your life. So, the earlier you start building it, the better.
Tips for Students on How to Build Good Credit
The advantages of good credit are so many that it’s difficult to list all of them down. A good credit can make it easy for you to rent a condo apartment or get a loan to buy a fancy car. Here are some handy tips to help you build a decent credit:

Open a bank account 

What’s puzzling is you need credit to build credit. Sort of chicken and egg stuff. It’s puzzling no doubt, but not perplexing. Not having a credit history works in your favor. That means your slate is clean. All you need to do is open a bank account, that’s it. Doesn’t matter whether it’s a checking or savings account.
Next, you need to diligently maintain the account balance. Opening an account means getting credit, but good credit only comes as a reward for maintaining the account.
It sounds so easy, doesn’t it? In truth, it is easy if you don’t have a bad press because of poor credit history. And if you are carrying the baggage of bad credit, the remedial steps are –

Finding a co-signer 

Find someone who is reliable and has good credit. He can be a family member or a close friend. Request them to co-sign a loan issued in your name. When someone with good credit co-signs a loan or declares you as a co-holder of their credit card, their good credit passed on to you and offsets the negative impact of the bad credit you incurred in the past.
There’s a caveat, though. While riding on someone else’s back is convenient, the person carrying your weight may end up with sore back and shoulders. You don’t want that, do you? When someone else is transferring their good credit to you, it’s your responsibility not to default. Or else, the person would be in debt. This could be a sticky situation and to not let it arise, you should become an authorized user. Authorized users remain under the purview of their parents. However, that’s possible only if you are a teenager.

Get new credit card 

For college students, getting a new credit card is easy. Of course it’s not assured and several factors are at play. But when young people, especially teens apply for credit card, lenders assume their parents will come for their rescue if they ever find themselves in the thick of debt. And so, they accept their request.
If you don’t get credit card this way, no problem. You can still get a secured card. All you need to do is deposit money to your bank account. Your friends or parents can borrow you. The amount of your deposit and that of your credit limit will be the same. Banks will unhesitatingly issue you a card as you will keep money in their escrow as security.

After getting the card 

Getting a card may be difficult, but not as difficult as maintaining one. Using the credit card in a frugal way is incredibly challenging. Resisting the temptation to max out credit limit is hard. Most people easily succumb to this temptation. It’s hardly surprising that the US consumer debt has reached a staggering $13 trillion.
Prudent use of the card comes with a checklist, which includes:

  • Not using more than 30% of your credit limit.
  • Staying away from big purchases.
  • No overdue balance.
  • Pay your electricity and telephone bills on time.
  • Don’t apply for loans if you haven’t paid off the previous ones.
  • If you have taken a loan, pay the interest on time.

In short, play by the rules and don’t irk the lender. If you can follow all the said pro tips, not only you’ll have a shining credit report, but learn tons of valuable lessons on saving.

Utilize student loan 

There’s no dearth of tips on how to secure student loan. Very few, however, offer tips on how to correctly utilize it. A whole lot of students take out loan to spend on non-educational items. This is a surefire way to ruin good credit. Never do that. Always spend the money on educational purposes.
Credit bureaus have their hawk eyes open and they can see what you are doing with the borrowed money. Your credit report will reveal to them all the purchases you’ve made with the loan amount. If they find out you’ve used up the money for purposes other than education, they’ll lower your credit score. In fact, the presence of unknown items on your credit report can make it difficult for you to get a loan.


Students have golden opportunities to build excellent credit. It’s extravagance and spunkiness that stop them from doing so. They must act wisely and in a matured way. The tips discussed can help them with requisite insights. But the implementation part solely rests with them.

Unknown Items On Your Credit Report Holding You Back From Securing A Loan

As important as a credit score is to consumers in order to qualify for a loan, up to 30% of the American population are not aware of their credit score. For many, this information only becomes useful when they wish to apply for a loan. It may also come as a shock if the financial institution picks up any derogatory information on the credit report. Consumers who have experienced payment issues before, may not be aware that these items are causing their scores to drop. These are some of the sneaky culprits on a credit report.
Credit Report

The Internal Bank Score

This may not show up on all credit reports but does show up on internal reports generated by ChexSystems, TeleCheck, and Early Warning Services. These services track the conduct of checking accounts such as returned items, unauthorized excesses, and even fraud. This could cause problems for consumers who wish to apply for checking accounts and loans, even if they have a clear credit report in other respects. Those who have bad info on their checking accounts should consider keeping the account clear for at least six months before applying for finance again.

Pesky Charge-Offs

Charge-offs are the debts consumers may have forgotten about but still seem to creep up and catch them later on. A charge-off is a loan that went bad with an institution and they’ve subsequently removed it from their books. The problem doesn’t go away from the credit report that soon though. Charge-offs take around seven years to clear off a credit report. There are ways to remove charge-offs that will allow customers to increase their credit scores substantially. One option is to hire a credit repair company to do the intricate work for you, or if you don’t mind doing some extra homework, you can file a credit dispute on your own.

Insurances, Cellular Contracts, and Medical Debt

These are items that few people are aware of that just seem to lurk on credit reports. Insurances and cellular contracts may not be debt, but companies are starting to list the payments on the credit bureaus. It’s important to manage these payments in order to keep the credit bureau clear. Medical bills are also not considered debt until they’re no longer in a current status. Blood work, emergency visits, and other items that may not have been settled by medical insurance may affect the credit rating of customers. Thankfully, new legislation keeps some medical debt off the bureau, but not all. Keep track of all appointments, invoices, and payments to ensure they’re up to date.
It takes time and a hard work to clear up credit reports and sometimes a lot of money. Keeping track of the paperwork is vital to ensure these items are cleared off credit bureau records. It is also important to manage payments effectively and keeping track of every dollar. A detailed budget and expenditure plan certainly helps with this.

What Not To Do With Your Credit Card When You Take A New One Out?

Getting a new credit card can create a nice feeling of accomplishment and opportunity. Maybe it’s your first card, which can feel especially gratifying. You’ve been approved by a credit card company and issued your new card. It probably has all sorts of benefits that make it better than previous cards you may have had, for one reason or another. Maybe there are bonus points for certain purchases like gas or groceries; or the new card could offer zero-interest for a certain period of time or on balance transfers. The advantageous could be numerable.
More than likely, the way you use your new credit card will vary based on the reasons you first applied. You may be planning some large expenses – like redoing a bathroom or refurbishing an apartment – which could make 0% interest for 15 or 20 months attractive.
You may have a new job that requires a lot of travel and a new card that will allow you to maximum benefits from airline purchases.
Credit Card
No matter why you got your new card, there are some things that should be almost universally avoided.

Balance transfers from previous cards.

Unless your new card has 0% APR and your intent is to stop using your old credit card, don’t transfer a balance from one card to another. Doing so doesn’t reflect responsible use of credit, unless transferring a balance significantly lowers your effective interest rate. It’s better for you to pay off balances. In fact, ideally, you shouldn’t be carrying a balance at all. You should be paying off every card in full at the end of each month.

Run up a large balance.

Nothing demonstrates to credit companies less ability to use credit responsibly than getting a new card and immediately accumulating a large balance. Very simply, don’t make charges to your card that you can’t afford to pay off at the end of the month. For some experienced credit card users with long credit histories, there are a couple of exceptions to this rule – including if you plan to take advantage of a low introductory interest rate to finance large expenses. Regardless, it’s a terrible idea to look at a new credit card as an excuse to go on a shopping spree.

Use a card for something other than its intended purpose.

Some people get a card to help finance large purchases, which can be beneficial in some instances for those who have demonstrated an ability to use credit responsibly. Various cards can offer 0% Introductory APR, which can be helpful for carrying a balance before later rolling any unpaid portions into line of credit or paying out of savings. If this is your intent, however, you shouldn’t spend money on a bunch of other things and not leave yourself enough credit for your intended purchases. Similarly, if you have cards that specifically provided benefits for airline purchases, groceries or gas, try to use cards in ways that match their intended benefits – that’s just a smart way to accumulate points or other rewards, and to be conscious of your spending.

Failing to pay the balance on a new card.

It’s not uncommon for people to carry a small balance on credit cards from month-to-month, but doing so is typically poor judgment. It demonstrates irresponsible use of credit, and can bring down your credit score if you carry a balance that’s too high relative to credit limit. Credit companies use this ratio, known as “credit utilization rate,” as one of the factors to establish your credit score. Always be sure to pay off your cards in full when you get a statement, especially for a new card. To keep from hurting your credit card score, you should never use more than about 30% of the credit available to you at any given time.

Cancel old cards right away.

Once you get a new card, don’t immediately cancel all your previous cards, as this can also hurt your credit score. By limiting the amount of credit available to you, you can indirectly raise your “credit utilization rate.” Besides, credit companies like to see a certain number of credit accounts open to know that you can responsibly handle credit.
Getting a new credit card, especially one with benefits that match your needs, can be an incredibly intelligent step. When used properly, credit cards can have tremendous advantages for facilitating transactions and improving your credit score over time, as well as numerous ancillary benefits. In order to make the most of any card, however, it’s important not only to use it when and how appropriate, but to specifically avoid many potential missteps including those listed above.

Choosing a Credit Card as a Business Owner

Thinking about getting a credit card as a small business owner? You may have read a review of business credit promotional cards, but perhaps you are still unsure about how to go about choosing a card. There is a wide range of factors that business owners need to take into account before they sign on. There are things like determining the importance of cash back offers, or deciding how important annual percentage rates are for you and your company. Read on for some extra help in choosing your card.

Choosing a Credit Card as a Business Owner

How are These Cards Different?

So what is the deal with these types of cards? A review of business credit promotional cards will reveal that these kinds of cards will appeal to entrepreneurs and small business owners in a variety of ways. For example, a card may provide cash back offers that can be applied to company purchases. Another card may waive service fees if you are purchasing technology or other specified equipment. The details will vary between card providers, which is why it’s a smart idea to read about the different offerings for each card.

What are the Necessities?

Yet before you pay attention to the more exciting parts, you need to take a look at the necessary components to a suitable card. A review of business credit promotional cards will include analyzing the APR and monthly interest rates. Is there a fee for overdrafts or over limits? What about card activation and the set number of transactions that need to be made each month? These are important factors to consider before you sign on to be a cardholder. If you are more interested in amassing cash back points, then you should look for a card company that offers that. If you want to know more about the fees that are included in the card’s APR, then a financial adviser may help you with that.

Choosing a Card that Suits You

Before you completely sign on to a new business credit card, be sure that the card includes features that appeal to your lifestyle and spending habits. For instance, some cards will offer discounts on travel deals and other global adventures. Other companies extend special cash back offers to their cardholders, or only to those who are small business owners. You really do need to sit down and check the fine print to see if there is a card that is well-suited to you and your plans.

6 Ways Getting Out Of Debt Is Like Losing Weight

A bad habit is a bad habit. Whether your problem is overeating, overspending, or any other bad habit, it usually just starts out small, and grows worse over time. Sadly, eating too much and having too much debt are very similar in many ways. Fortunately, there are ways to overcome both problems.

Getting Out Of Debt

Here are 6 ways getting out of debt is like losing weight, along with some tips for fixing both problems:

If you keep spending you’ll keep getting further into debt.

This one is simple to understand. Yet people still keep using credit cards more and more. The problem isn’t using credit cards once. Or twice. Or regularly, assuming you pay them off each month. The problem is that once you start carrying a balance, a little debt here and a little debt there quickly starts to snowball, and before you know it you’ve got a mountain of debt! Just like a little extra snack here and there isn’t a big problem. But once you start becoming overweight, the problem compounds, and next thing you know you are 20 pounds, 30 pounds, 40 pounds, or more over your desired weight. Simply put, overeating causes weight gain, overspending causes debt gain.

The more debt you have the harder it is to lose it.

If you put on a few pounds, you can usually get it off pretty quickly. But the longer you wait before trying to lose it, the harder it becomes to get it off. And before long you start having other health problems that are related to being overweight. Know the feeling? Well, it works the same with debt. Not only does your debt keep adding up, but the interest compounds, and your debt grows faster every month. Then one day you wake up and can’t pay your bills. Sad, but true for many people dealing with weight and debt issues.

Over spending can easily become a habit.

Everyone needs to eat. As long as you eat the right amount, everything is fine. But once you start eating for fun, or to relieve stress, or to deal with your life problems – or for any other reason than hunger – your overeating quickly becomes a habit, and not something your body needs. It works exactly the same way with debt. Once you start using your credit cards for fun, or shopping sprees, or any other purchase that you can’t afford to pay off or use cash, then it just becomes a bad habit. One that is very hard to break!

The banks want to keep you in debt once you get there.

A bank or credit card company customer with debt is a profitable customer. The more debt you have, the more interest you pay. And the more offers you get for more credit cards. Sadly, they don’t draw the line for you to let you know when enough is enough. Very much like someone who eats fast food frequently is a profitable customer for restaurants. So they do everything they can to keep you coming back for more. And they don’t refuse to serve you even if you are overweight or in bad health. So whether you have too much debt or too much extra weight, you need to be able to know when it is time to stop, or get help.

It’s never too late to get out of debt If you work at it.

There are lots of strategies for getting out of debt. And while none of them work overnight, you can get yourself out of debt no matter how much debt you have. There are different strategies for people with a little debt (debt consolidation or credit counseling), people with a lot of debt (debt settlement), and people seriously in debt (bankruptcy). The same holds true for losing weight – the older you get the harder it is to lose weight, but there are strategies you can follow to get rid of the pounds. A weight loss center can help you shed a few pounds, a trainer or nutritionist can help you lose more weight, and a doctor is a good choice if you have a lot of weight to lose (actually, visiting a doctor is a good idea for anyone just to make sure you don’t have any serious health problems).

You can get out of debt by yourself – or you can get help from an expert.

Putting together a debt relief plan is not that complicated. But sticking with it can be hard to do. In fact, statistics show nearly 75% of all people who start a debt reduction plan don’t finish it. So getting help from a debt relief company (or attorney if your debt is real bad) can help you stick with your plan. And it can often help you get better terms (meaning lower interest rates) than you can get on your own, especially if you have lots of debt and bad credit. Most people can lose weight on their own by exercising more and eating better. But if you’ve tried before and failed, then it can help your motivation if you join a weight loss center, hire a trainer, or visit a doctor if you are dangerously overweight. But which ever method you choose, whether you are trying to reduce weight or reduce debt, you need to be committed for it to work.

Your FICO Score Has Hit Rock Bottom – What Can You Do?

Most people think they have no recourse when their FICO score hits rock bottom. Why? They think that because that is what they are led to believe. They go to the bank and ask for a loan and get rejected, or their premiums rise when they apply for insurance. When this happens, it isn’t wrong to think that there is nothing left to do given the system. Thankfully, you don’t have to do that if you want to fight back. What the system doesn’t mention is that there are ways to improve your score. All you have to do is follow these tips and work hard.

Dispute Your Score

Before you move onto making adjustments, you can go to and dispute your score. The thing to remember is that people make mistakes. And, you wouldn’t be the first person to fall foul of the banks in this manner. Even if you think your score is correct, there is no harm in asking for a second opinion. If it turns out they made a mistake, you will save yourself a lot of time and energy fighting this battle. So, don’t be afraid to say that they are wrong. The worst that can happen is that they say they are right. In which case, you move onto the next option.


There is the possibility that the creditor will wipe the remaining debt altogether. But first, you need to admit that you owe them money. There is no point in denying it because it is plain for everyone to see. When you accept the debt, you can negotiate with them and try to come to a compromise. What some creditors do is mark it as ‘paid as agreed’. Then, the debt comes off of your record, and you pay the negotiated amount. The thing to remember is that creditors want some of their money instead of zero. If you give them that opportunity, they will grab it with both hands.

Borrow Money

You can’t get a loan or a credit card, so where are you going to get the cash? You can turn to in your time of need. Companies such as these specialize in securing loans for people with bad credit. The fact that you have a low FICO score doesn’t matter to them, which is a good start. Also, the rates are a lot more flexible and reasonable. A credit union is also a good option if your debt is small. Don’t deal with a loan shark because they will make your life hell.

Raise Your Limit

Raising your limit is a dangerous option, but it can provide some much-needed relief. If your limit is higher, the percent that you owe is lower. On a credit score, that looks much better than your original situation. However, you have to resist the temptation to start spending the extra money. If you do that, you will end up in an even worse position. First, you have to get your creditors to agree.

A low FICO score isn’t the end of the world. You have options – you just need to think carefully before you act.

Where to Get a Loan with Bad Credit

Having bad credit can be stressful and you may be wondering how you ever managed to get yourself into that position in the first place and how you will possibly get out. If you are short on cash and looking for a loan or trying to find a way to consolidate your debt, you may be feeling despondent. The truth is, that if you know where to look, it is not so terrible. You just need to know where to get a loan with bad credit and you will be able to start getting yourself back on your feet. The even better news is that there are a number of different lenders, offering different types of loans, that are available today and having bad credit is no longer such a black mark against your name.

Finding a Lender

Many bad credit lenders offer flexibility in more areas than just the fact that they offer bad credit loans. If you are wondering where to get a loan with bad credit, you can start online. Many bad credit lenders offer online loans to compliment the flexibility and convenience they offer in terms of their requirements. This means that you can sit at home and research which loans are available to you, compare the requirements, terms and conditions of the loans and even start applying for loans without even needing to speak to a person.

When you search online you will find that some of the lenders that offer bad credit loans include car title loans, payday loans and peer-to-peer loans.

Bad Credit Lenders

Now that you know where to get a loan with the bad credit, we will look at some of the details of these three types of loans. Different types of loans will suit different people and you need to know how the loans work to find the right one for you.

  • Car title loans – These are secured loans that are available for a period of around 24 months. Your car is the security of the loan so to be eligible you must have a car with a current pink slip in your name and insurance. The loan amount is calculated according to the value of your car. The loans are available within the hour, making them suitable for times of financial urgency. There is no credit check, no employment check and no financial background check.
  • Payday loans – These are unsecured loans that are available in the short term in the period until your next paycheck arrives. To be eligible you must be employed as the loan amount is calculated according to the size of your paycheck. There is no credit check and the loans can be available on the same day.
  • Peer-to-peer loans – While these are not exactly bad credit loans as they do list your credit score, they are loans from individuals and the the individual lender has the discretion to offer a loan despite a bad credit score. This can be an option of where to get a loan with bad credit.

How to Increase Your Credit Score Before Applying for a Mortgage in Burlington

While you may have saved for a down payment on a brand new house, if you have less than perfect credit, then you may find that you have a difficult time qualifying for a mortgage and purchasing the home you really want. There is good news. There are a number of steps you can take to help and improve your credit score and get approved to purchase the home you really want.

Pay Your Credit Cards Off

If you are swimming in credit card debt, then lenders are likely going to think twice prior to giving you a mortgage. This is due to the amount of credit you have used and your debt-to-income ratio. This is why it is a smart move to go ahead and pay off of your balances prior to sending out any additional mortgage application.

Try to make more than just the minimum payment on the cards you have each month, which will help to boost you credit rating and lower the amount of overall debt you have. This will also show your lenders that you are willing to repay what you have borrowed.

Look at Your Credit Reports

Mistakes happen all the time. When this happens you don’t want to be the last person that finds out about them. Try to get your free credit report online so that you can check what is going on and what is reporting against your credit score. If you find an error, you need to file a dispute right away to have it corrected. While this can take some time, having issues with your credit report fixed right away will help to save you time and money.

Don’t Apply for any New Lines of Credit

If you are moving into a new home, you may be interested in getting a new car, or furniture or something else, but you should not apply for any new lines of credit. This may mess up the possibility of you securing the mortgage that you need to get the home you want. Also, don’t close any accounts either, since this may make your credit history appear minimal, which could also hurt your chances of getting a mortgage.

Taking the time to get the mortgage that you want and need will require you understanding your credit rating. While this can take time and effort, the fact is that it will be well worth it in the end.

The Five Elements That Go Into Your Credit Score

A credit score is a number that lenders use to determine the risk of lending money to a given borrower. Credit card companies, auto dealerships and mortgage bankers are three common examples of types of lenders that will check your credit score before deciding how much they are willing to lend you and at what interest rate. Insurance companies, landlords and employers may also look at your credit score to see how financially responsible you are before issuing an insurance policy, renting out an apartment or giving you a job.

In the next lines, we will explore the five biggest elementss that affect your score: what they are, how they affect your credit, and what it all means when you go to apply for a loan. You must know these aspects, even if you hire a credit repair company to help you out.

Your credit score is a three-digit number generated by a mathematical algorithm using information in your credit report. It is designed to predict risk, specifically, the likelihood that you will become seriously delinquent on your credit obligations in the 24 months after scoring.There are a multitude of credit-scoring models in existence, but there is one that dominates the market: the FICO credit score. FICO scores range from 300 to 850, where a higher number indicates lower risk.A consumer has three FICO scores, one for each credit report provided by the three major credit bureaus: Equifax, Experian and TransUnion. Unfortunately, consumers currently have access to only their Equifax and TransUnion FICO scores.

Data from your credit report goes into five major categories that make up a FICO score:


  1. Payment history (35 percent):

According to FICO, past long-term behavior is used to forecast future long-term behavior.FICO keeps an eye on both revolving loans – such as credit cards – and installment loans, such as mortgages or student loans. Although the weight of each loan varies between individuals, FICO indicates that defaulting on a larger installment loan like a mortgage will damage a credit score more severely than defaulting on a smaller revolving loan. One of the best ways for borrowers to improve their credit score as a whole is by making consistent, timely payments.

  1. 2. Amounts owed (30 percent):

The second-most important component of your credit score is how much you owe, because a borrower should maintain low credit card balances. FICO says people with the best scores tend to average about 7 percent credit utilization ratio, but that 10 to 20 percent usage is fine. That rule of thumb applies to each individual credit card as well as the overall level of debt.As you could notice, the first two factors make up nearly two-thirds of your score. So if you pay your bills on time and do not carry big balances, you are two-thirds of the way toward a good credit score.

  1. Length of credit history(15 percent):

It is impossible for a person who is new to credit to have a perfect credit score. A longer credit history provides more information and offers a better picture of long-term financial behavior. Therefore, to improve their credit scores, individuals without a history should begin using credit, and those with credit should maintain long-standing accounts.

4.Types of credit in use (10 percent):

The final thing the FICO formula considers in determining your credit score is whether you have a mix of different types of credit, such as credit cards, store accounts, instalment loans and mortgages. It also looks at how many total accounts you have.

5.New credit (10 percent):

Your FICO score considers how many new accounts you have. It looks at how many new accounts you have applied for recently and when the last time you opened a new account was. The score assumes that if you have opened several new accounts recently, you could be a greater credit risk. People tend to open new accounts when they are experiencing cash flow problems or planning to take on lots of new debt.