Your credit score is a three-digit number that lenders use to evaluate your creditworthiness. A good credit score can save you thousands of dollars in interest over your lifetime.
What Affects Your Credit Score
- Payment history (35%): Paying bills on time
- Credit utilization (30%): Percentage of available credit used
- Length of history (15%): Age of your credit accounts
- Credit mix (10%): Variety of credit types
- New credit (10%): Recent applications
How to Improve Your Score
- Pay all bills on time, every time
- Keep credit utilization below 30%
- Maintain old accounts to build history
- Limit new credit applications
- Check your credit report annually for errors
