What is a credit score?
•A score that distills all the information in your credit report into a single number
–This number indicates one’s credit worthiness
•How likely you are to pay back your loans
•Sometimes called a FICO score
–Fair Isaac Corporation
•Credit scores fall between 600 - 900
–This number indicates one’s credit worthiness
•How likely you are to pay back your loans
•Sometimes called a FICO score
–Fair Isaac Corporation
•Credit scores fall between 600 - 900
What does my credit score mean?
What makes up my credit score?
•35% - Paying on Time
–Set alerts to pay bill monthly
–It takes diligence and patience to bring score back up after missing payment
•30% - Keep Balance Low
–Spread balance out over cards
–Only charge 30-40% of your limit per card
•15% - Length of Credit History
–The longer you’ve had credit, the less risky you are
•10% - Recent Credit (?)
–Don’t request multiple cards within several months of each other
•10% - Type of Credit
–Spread out types of credit
-Credit cards, personal loans, school loans, car loans
–Set alerts to pay bill monthly
–It takes diligence and patience to bring score back up after missing payment
•30% - Keep Balance Low
–Spread balance out over cards
–Only charge 30-40% of your limit per card
•15% - Length of Credit History
–The longer you’ve had credit, the less risky you are
•10% - Recent Credit (?)
–Don’t request multiple cards within several months of each other
•10% - Type of Credit
–Spread out types of credit
-Credit cards, personal loans, school loans, car loans