2/6/25

    Here are five key things you need to know about credit:

1. Credit Score Matters – Your credit score is a number (typically between 300-850) that reflects your creditworthiness. Lenders use it to determine your ability to repay loans and the interest rates you qualify for. A higher score means better borrowing terms.
2. Payment History is Crucial – Your payment history makes up about 35% of your credit score. Making on-time payments on credit cards, loans, and other debts is essential to maintaining good credit.
3. Credit Utilization Affects Your Score – Credit utilization refers to how much of your available credit you're using. Keeping your credit card balances below 30% of your total limit can help maintain a healthy score.
4. Types of Credit Matter – Having a mix of credit accounts, such as credit cards, car loans, and mortgages, can positively impact your score. This shows lenders you can manage different types of credit responsibly.
5. Checking Your Credit is Important – Regularly reviewing your credit report helps you spot errors and signs of identity theft. You can get a free credit report annually from each of the three major credit bureaus (Experian, Equifax, and TransUnion) at AnnualCreditReport.com.