This content includes information from experts in their field and is fact-checked to ensure accuracy.We are committed to bringing you researched, expert-driven content to help you make more informed decisions as it pertains to all aspects of your daily life. We constantly strive to provide you with the best information possible.When it comes to your financial standing, achieving and maintaining a good credit score should be a top priority.
"Credit scores are based on the types of credit," explains Stouffer."The revolving credit accounts have more impact because this type of account will always change. Credit cards can be maxed out, and this will cause scores to drop considerably and only improve when balances are brought down. Usually, less than 30 percent of available credit is the acceptable upper limit. Above that, scores drop.
"When you apply for credit, the lender will typically make an inquiry into your credit history. This is called a 'hard inquiry,' and it can have a negative impact on your credit score," says."However, there are also 'soft inquiries,' which do not affect your credit score and are typically made by lenders for marketing purposes. That's why it's important to be aware of these hard inquiries and make sure that they are not being made without your consent.