Credit Score Basics

Your credit score isn’t just a number—it’s your financial passport, and it can open (or close) a lot of doors. Let’s break it down, fast.

So, what exactly is a credit score? It’s a number between 300 and 850, based on a few key factors.

The biggest chunk—35%—is your payment history. Basically, do you pay your bills on time? Then there’s credit usage, which is 30%—how much of your available credit are you using? Credit age makes up 15%, new credit inquiries are 10%, and finally, credit mix—like having both cards and loans—adds the last 10%.

Why does it matter? A score above 700 can mean lower interest rates, better loan offers, and even better chances with landlords, insurers, or employers.

So how do you build and maintain a strong score?

First—pay your bills on time. Setting up autopay can help. Second—keep your credit usage under 30% of your limit. Third—don’t close old accounts unless you really have to; they help your credit age. And finally—check your credit reports regularly at Annual Credit Report dot com—it’s free!

Start small. Be consistent. Your future self will thank you.