5 things you need to know about your credit score
4 minutesWhether you're new to credit or are looking for a refresher, here are a few things you should know about your credit score.
1 what's a credit score?
A credit score is a number made up of three digits which is used to represent your creditworthiness.1
2 what makes up a credit score?
Factors that go into figuring out your credit score can include how many credit accounts you have, how long those accounts have been open, timing of payments, account balances and more.1
3 how to establish credit
One way to establish credit is to apply for it at a local department store or with an online retailer. Another option that can establish credit is to get a secure credit card or loan.2
4 how to establish healthy credit habits
The best way to help establish healthy credit is to pay your bills on time. Another habit to adopt while establishing healthy credit is to keep your utilization low, or having a low balance compared to your credit limit. You should want to check your credit score regularly. You can do this by utilizing a free service and it will not affect your credit score.3
5 the importance of checking your FICO® Score
Keeping an eye on your credit score regularly can help you detect if any problems start to occur and start the process of fixing them before they become much more difficult. It is also encouraging to see your score rise as you put in the work to establish your credit.3
If you want to learn more about credit and how to help improve your credit history, take more lessons on our Credit Education hub.
1
https://www.experian.com/blogs/ask-experian/credit-education/score-basics/understanding-credit-scores/
2
https://www.experian.com/blogs/ask-experian/credit-education/improving-credit/building-credit/
3
https://www.experian.com/blogs/ask-experian/what-are-good-credit-habits/
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