Your credit score is a three-digit number that can shape your financial future. It affects everything from loan approvals to rental applications and even some job offers.
Scores range from 300 to 850. The higher your score, the lower the risk you pose to lenders. A score above 740 typically gets you the best interest rates on mortgages and auto loans.
Five factors determine your score: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%). Paying bills on time is the single most impactful thing you can do.
Check your credit report annually at AnnualCreditReport.com. Dispute any errors—they are more common than you think—and keep your credit utilization below 30%.