So what goes into your Credit Score anyway? Glad you asked! Here’s what you need to know:

Your Payment History has a major impact on your credit score, usually about a third. That means paying all your bills on time. And making at least your minimum payments due. It’s a simple, but huge, part of your score.

Another major factor is Credit Utilization, or the percentage of your total credit line used. Lenders are more impressed when you use less credit then is available. That’s why maxing out your credit cards can hurt your score. Credit Utilization usually affects about another third of your credit score.

Your Credit Score also considers the Age of Your Accounts, The longer your accounts are open, the more it signals responsibility. This can affect between 10-15% of your score.

The final factors that affect your Credit Score are the Number of Accounts and Hard Credit Inquiries. Too many accounts or too many hard inquiries may look like you’re trying to get as much credit as possible, which may lower your score. A hard inquiry is an individual credit check done by a lender when you have applied for credit such as with a car loan or credit card.

Now you know the facts behind your Credit Score. Keep them in mind to keep your credit happy.

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