Understanding Your Credit Score

Credit Score Fundamentals

Your credit score affects loan rates, apartment applications, and even job prospects. Understanding it helps you optimize it.

**800-850:** Exceptional

**740-799:** Very Good

**670-739:** Good

**580-669:** Fair

**300-579:** Poor

Payment History (35%)

Pay all bills on time

Set up autopay for minimums

Even one late payment hurts

Credit Utilization (30%)

Use less than 30% of available credit

Under 10% is even better

Check balances before statement closes

Length of Credit History (15%)

Keep old accounts open

Don't close your oldest card

Become an authorized user on old accounts

Credit Mix (10%)

Having different types helps

Credit cards, auto loans, mortgage

Don't open accounts just for mix

New Credit (10%)

Hard inquiries stay for 2 years

Multiple inquiries for same loan type count as one

Avoid opening many accounts quickly

**Dispute errors** on your credit report

**Pay down credit cards** to lower utilization

**Ask for limit increases** (without hard pull)

**Become an authorized user** on someone's old account

**Set up automatic payments** to never miss due dates

Checking your own credit (soft pull)

Income level

Bank account balances

Employment status