Credit scores are numerical representations of your creditworthiness, used by lenders to assess risk. Here's a breakdown of key concepts:
📌 What Determines Your Credit Score?
- Payment History (🔒 35% weight)
- Credit Utilization (📊 30% weight)
- Length of Credit History (📜 15% weight)
- Credit Mix (🔄 10% weight)
- New Credit Inquiries (🔍 10% weight)
🚀 How to Improve Your Credit Score?
- Pay bills on time (⏰ Set reminders!)
- Reduce credit card balances (📉 Lower utilization!)
- Avoid frequent credit applications (🚫 Limit inquiries!)
- Maintain old accounts (📦 Keep credit history long!)
- Diversify credit types (🧾 Mix secured/unsecured loans)
📚 Further Resources
- Credit Scores Guide for step-by-step strategies
- Credit Score Tools to monitor and analyze your score