Learn about the factors that affect your credit score
Understanding Your Credit
From getting approved for a loan to lowering your interest rates, there are many benefits to improving your credit. Find out how you can potentially improve your score and overall financial health.
How is my credit score calculated?
Your score is developed using credit data that is grouped into five categories:
Payment History (35%)
Pay your debts on time. This is the single most important factor of your credit score.
Amount Owed (30%)
Keep your credit card balances under 30% of your credit limit. High balances may signal to banks that you are at a higher risk for defaulting..
Length of Credit History (15%)
In general, a longer credit history will increase your score.
Credit Mix (10%)
It’s beneficial to have different types of credit (credit cards, installment loans, auto loans, mortgage loans etc.).
New Credit (10%)
Avoid opening several credit accounts in a short period of time; this can represent a greater risk to the lender (especially for those without a long credit history).
