Credit Scores Explained «4K»

: Your record of making on-time payments. This is the most influential factor.

Higher scores suggest you are a lower risk to lenders, often leading to better interest rates and loan terms. While ranges vary by model, a general breakdown includes: : Exceptional 740–799 : Very Good 670–739 : Good 580–669 : Fair 300–579 : Poor 3. The Three Major Bureaus A guide to understanding your credit score credit scores explained

: Having a variety of account types, such as credit cards and installment loans (car loans or mortgages), can improve your score. : Your record of making on-time payments

: The age of your oldest and newest accounts. Longer histories generally result in higher scores. While ranges vary by model, a general breakdown

Most scoring models, like , use five key factors from your credit history:

: Also known as credit utilization . It compares how much you owe to your total available credit limit. Lower percentages (ideally under 30%) are better.

A credit score is a three-digit number, typically ranging from , that summarizes your creditworthiness. It acts as a "financial report card," telling lenders how likely you are to repay debt on time. 1. How Credit Scores Are Calculated