MY CREDIT CALCULATED?

A credit score is a 3-digit number (300–850) that shows how likely you are to repay borrowed money. Lenders use it to decide whether to approve loans or credit—and on what terms. The most commonly used credit score is the FICO Score:

• 300–579: Poor

• 580–669: Fair

• 670–739: Good

• 740–799: Very Good

• 800–850: Excellent

A score of 700+ is generally strong enough for most loans with favorable rates.

HOW YOUR FICO SCORE IS CALCULATED

• Payment History (35%) – Paying on time matters most.

• Amounts Owed (30%) – Keep credit card balances low—ideally under 30% of your available credit.

• Length of Credit History (15%) – Older accounts help. Don’t close them unless necessary.

• Credit Mix (10%) – A mix of credit types (cards, loans, etc.) can boost your score.

• New Credit (10%) – Too many recent applications can lower your score.

Tips to Build or Maintain a Great Score

• Pay all bills on time (use reminders or autopay).

• Keep credit utilization under 30% (under 10% is even better).

• Don’t close old accounts—they help your credit age.

• Limit new credit applications—only apply when needed.

• Check credit reports regularly (AnnualCreditReport.com for free reports).

The best thing about a credit score is that it’s not permanent—you can improve it. I’m not a credit expert, but I’ve seen what works: avoid opening or closing accounts unnecessarily, and try to keep revolving balances under 30% of your limit. Everyone’s situation is different, but many people hesitate to apply for a mortgage simply because they don’t know where they stand. Try to find out as soon as possible—since applying is free—you might be in better shape than you think.