How your credit score is calculated – really
2 min read
July 11, 2023 • Spruce
There’s a lot of financial information available at our fingertips, but it’s important to know what’s a fact and what’s fiction. Take understanding what affects your credit score. Do you really know how it’s calculated?
Check out the video below where we bust a common myth about credit scores.
This information provided for general educational purposes only. It is not intended as specific financial planning advice as everyone’s financial situation is different.
Listen — You may have heard some myths out there about credit scores … like the only thing you need to worry about is paying bills on time.
Ya, that’s important – but if you care about good credit, you need to know the full story. Why? Because good credit is key. The higher your score, the better – because it’s a huge determining factor for things like getting approved for credit cards, loans, and such.
So, how is your credit score calculated?
There are 5 factors that make up your credit score — and some are a bigger deal than others.
- Paying your bills on time is huge. But here’s what else affects your score:
- How much you owe across lines of credit
- How long you’ve had a credit history
- How often you’re applying for new credit
- What types of credit you have
Spruce can help you keep tabs on your credit score. Want to know more? Visit Spruce money.com.
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