Understanding Credit Scores: What Really Matters

Your credit score affects loan rates, apartment applications, and even job prospects. Here’s what actually matters:

The 5 Factors

1. Payment history (35%) – Never miss payments
2. Credit utilization (30%) – Keep under 30% of limits
3. Credit age (15%) – Keep old accounts open
4. New credit (10%) – Limit applications
5. Credit mix (10%) – Variety of account types

Score Ranges

300-579: Poor
580-669: Fair
670-739: Good
740-799: Very Good
800-850: Exceptional

Quick Wins

Pay bills on time, reduce credit card balances, become authorized user on parent’s card.

Curated from credit reporting agencies for NestEggMama readers.