What Really Affects Your Credit Score?

Special to The Canton News 
Your credit score is like your financial report card, and it can make a big difference when you’re applying for loans, getting an apartment, or even job hunting. But what actually affects your score?

The Big Five:
1.    Payment History (35%): This one’s huge. Pay your bills on time, every time. Even one missed payment can leave a mark.
2.    Credit Utilization (30%): This is the amount of credit you’re using compared to what you’re allowed. Keep balances below 30% of your credit limit, lower is even better.
3.    Length of Credit History (15%): Older accounts show lenders you’ve got experience. Don’t close your oldest credit cards unless you have to.
4.    New Credit (10%): Opening several accounts in a short time? That can ding your score. Be strategic.
5.    Credit Mix (10%): A healthy mix (like credit cards, student loans, and auto loans) shows you can handle different types of credit responsibly.

Your Credit-Smart Checklist:

• Pay on time, every time.
• Keep those balances low.
• Don’t go credit-card-happy.

• Mix it up, but only when it makes sense.

   

Understanding your credit score is the first step to mastering it. And if you’re not sure where to start? Let’s talk. We’re here to help you build strong credit habits—no judgment, just support. Learn more or connect with us at veritasfcu.org.