Understanding the basics of credit is an essential life skill.
How your credit Score is broken down
Credit scores range from 300 being the lowest, and 850 being the highest. Credit scores help lenders determine how likely you are to pay back money that you borrow. Your score is computed by five categories: debt (30%); new credit (10%); length of credit (15%); credit utilization (10%); payment history (35%).






Most common mistakes to lower your credit score
1. Paying your late bills late
2. Paying less than the minimum amount required each month
3. Keeping debt levels too high
4. Owning too many credit accounts
5. Failing to notify creditors if you’ve moved or have changed names


Most impactful ways to improve Your Credit Score
1. Paying all of your bills on time
2. Keeping your revolving credit balances low
3. Pay more than the minimum amount required each month
4. Avoid opening too many credit accounts over a short period of time
5. Completely pay off credit card debt opposed to transferring the debt to new accounts
6. Monitor your credit report regularly