Missing or late payments. accounting for collections. The account balances are excessive. Your credit limit is dangerously close to being reached because of the balance on your revolving accounts, such as credit cards.
Numerous different types of credit information from your credit report are used to construct FICO Scores. Payment history (35%), amounts owed (30%), duration of credit history (15%), new credit (10%), and credit mix (10%) are the five categories into which this data is divided.
When you apply for a mortgage, the lender will have to perform a hard inquiry on your credit record, which could initially lower your credit score. When a lender obtains a copy of your credit report from one of the three major credit agencies, the process is known as a "hard inquiry" or "hard pull" (Experian, Equifax or TransUnion).
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