Your credit history and credit score have a major impact on your life. A credit history follows you no matter where you live, work, do your banking or apply for credit cards or loans. A credit score varies in range from 300 to 900. The national average for a credit score varies, but is usually around 692, says Experian Information Solutions, Inc. Learn more about what impacts a credit score, the short-term and long-term effects of a credit history and ways to improve a credit score.

What Impacts a Credit Score

Many events and activities impact a credit score. Approximately 35 percent of a credit score concerns payment history. Outstanding debt makes up 30 percent of the credit score. The credit history length comprises 15 percent. Ten percent of a credit score is based on inquiries. The last ten percent of a credit score concerns types of credit. Traditionally, information from credit card companies and lenders made up most of the information that impacted a credit score. More frequently, however, cell phone carriers, energy companies and other service providers now report payment information to the credit reporting agencies.

Short-term and Long-Term Effects of Credit Scores

A credit score has a number of short and long-term effects on your life. Getting denied for low interest credit cards or loans and not getting the best loan rates are common short-term effects of having problems in a credit history. A problematic credit score can also have a number of long-term effects on your life. Problems in a credit history like bankruptcies, judgments or collections don’t just go away. Hiring companies, landlords and insurance companies are just a few of the companies using credit histories or credit scores to determine eligibility.

Ways to Improve a Credit Score and Establish Credit History

There are a number of ways to improve a credit score and to establish a solid credit history. A free credit report is available to everyone annually and can be helpful for pinpointing mistakes or suspicious activities. A solid credit monitoring program includes ideas for ways to improve a credit score. A “poor credit” credit can help establish a solid credit history. Prepaid phone cards can also help improve a credit score.