What's the #1 contributor to my credit score?

Chances are you’re not yet borrowing up a storm so you may not even have a score. Once you do, ironically, inactions will contribute to your score. Starting out of the gate, your score may be low because lenders don’t yet know much about you and if you’re risky. Doesn’t mean you’re “behind”. Just know what’s coming up so you’re set up for success.

There are 5 SPECIFIC THINGS that make up your credit pie ( like when your final grade for a class is made up of 20% project, 30% mid-term, 50% final).**Simplifying the vocab for you: credit sources = loans = debt = lines of credit (mean the same thing)

Payment history - 35%

Do you pay up. If you’ve been responsible in the past you can be trusted in the future. If you’re new to borrowing, you won’t have much.

Credit usage - 30%

How much debt are you carrying at that moment ⭐This is like a TRICK QUESTION on a test⭐ “I have ZERO debt!” is not the correct answer. Never using credit is as bad as maxing out your credit. You want to show you have responsibly handled debt without going off the rails.

Length of your credit history - 15%

How long have you been borrowing? You want to show you’re a pro.

The variety of credit you’ve had - 10%

How many places do you borrow from? (Like, do you have a credit card and a student loan? Do you have a car loan and mortgage?) It’s a fine line. Too many lines of credit are a ding to your score. But diverse credit types are a boon.

New credit 10%

Did you recently apply for another new credit card or loan? If you really need one, OK. But if you don’t, don’t apply for a new credit card at Gap one month and Nordstrom the next.