What does my credit score actually mean?

Good morning!
Here’s what they use to decide on your credit score…

DEFINITION
Credit Score Explained:

• Your credit score is a number that represents your creditworthiness, typically ranging from 300 to 850. It helps lenders decide if they should lend you money and at what interest rate.

PRACTICAL ADVICE
What’s a credit score made up of?

• Payment History (35%): Do you pay your bills on time? Late payments hurt your score.

• Amounts Owed (30%): How much debt do you have? High balances can lower your score.

• Length of Credit History (15%): How long have your accounts been open? Longer is better.

• New Credit (10%): Have you opened many new accounts recently? Too many can be risky.

• Credit Mix (10%): Do you have different types of credit (credit cards, loans)? A diverse mix is beneficial.

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