Your credit score is your first impression. It’s that first photo you feature on your profile, where you want to look your best. A good credit score (FICO 700 or higher) shows that you might be relationship material. Now, how exactly is that credit score calculated?
PAYMENT HISTORY (35% OF YOUR CREDIT SCORE)
Tracks if you’ve paid your bills on time for 7 years, but the past 2 years are weighed more heavily. Kind of like looking at someone else’s social profile. You don’t overthink their 2010 activities, but you 100% judge them on what they posted last week.
Bottom line: Pay on time, all the time.
AMOUNTS OWED (30% OF YOUR CREDIT SCORE)
Shows how much you owe against how much credit you have available. Lenders like to see you using 25% or less of what you could borrow. So if you have a $10,000 credit line, don’t owe more than $2,500.
Bottom line: Don’t max yourself out.
LENGTH OF CREDIT HISTORY (15% OF YOUR CREDIT SCORE)