While many lenders use credit scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable for a given credit product.No single "cutoff score" determines a borrower's ability to secure credit, and there are additional factors that lenders use to determine your actual interest rates.FICO scores are provided to lenders by the three major credit bureaus: Equifax, Experian and Trans Union.

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Does consolidating credit cards affect credit score video

If your credit report shows evidence of on-time payments on your car loan, it will help increase your credit score.

Having a good history and no late payments shows you’re a responsible borrower and someone who could pay a future mortgage fairly easy.

A person's income and availability of assets also affects the credit rating or score he or she receives.

When an individual wishes to secure a mortgage or car loan, he or she must have a sufficient credit rating.

Taking out a debt consolidation loan can affect your credit score.

A debt consolidation loan affects your credit score in a positive way.The higher the credit score, the lower the indicated risk.But no credit score says whether a specific individual will be a "good" or "bad" customer. Mortgages are sometimes referred to as “good” debt, while credit cards tend to be referred to as “bad” debt because of the high interest rates and large amount of fees attached. Whichever opinion you side with, car loans are still considered consumer debt, but they’re in a category all their own.Some people argue that since auto loans are backed by the value of the car and the interest rate is very low, it makes good financial cents (ha! Here’s how car loans affect your credit score: Your overall credit score is made up of several different sections, and about 10% of your credit score reflects the type of credit you’ve utilized.You'll learn what you need to know on keeping your credit score as high as possible.