Your FICO® score is a number ranging from 300 to 850 that lenders use when evaluating your credit risk. A good credit score (700+) puts you in a better position to get loans and credit cards with lower rates. Here’s a closer look at five factors that affect your credit score:
10% New credit
When you apply for a new credit card or loan, a hard inquiry into your credit history can ding your credit score.
10% Types of credit
Managing multiple forms of credit (e.g., auto loans, student loans, credit cards) responsibly can boost your score.
35% Payment history
Payments made on time raise your credit score, and late payments bring it down.
30% Credit utilization
Credit utilization measures the debt you owe compared to the total credit you have available. Reducing your debt can help keep your credit utilization low.
15% Length of credit history
A long history of making responsible loan payments helps your score.