How is your credit score calculated? Your credit score is calculated based on 5 inputs.
- Payment history – 35%
- Amount of money you owe – 30%
- Length of credit history – 15%
- New lines of credit – 10%
- Types of credit lines – 10%
80% of your credit score is determined by how long you’ve been making on-time payments and keeping your balance low.
Bottom line, don’t “max out credit cards.” Keep the balance low. And pay them on time.
To learn more about your credit score check out our podcast episode with Nikole Vialet where we discuss tactics to improve your credit score.