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Amber JonesWe’ve made it to the final component in your credit score—and while it makes up a smaller portion of the overall algorithm, it’s still an essential piece of the puzzle. This last factor, called mix of credit, is all about showing that you can handle different types of financial responsibilities.
Amber JonesWhen it comes to improving your credit score, sometimes what you don’t do matters just as much as what you do. That’s especially true with new credit, the fourth key factor in the credit score algorithm.
Amber JonesWhen it comes to building better credit, time is on your side—if you use it wisely. The third component of your credit score is length of credit history, and while it makes up a smaller percentage than payment history or credit utilization, it still plays a powerful role in your overall score.
Amber JonesIf you’ve ever been told to “keep your balances low,” you were hearing advice rooted in one of the most influential pieces of your credit score: credit utilization. It’s the second-largest factor in the FICO® scoring model—making up 30% of your score. In this installment of our 5-part series, Sam Parker, CEO of My Credit Guy Credit Restoration, breaks down what credit utilization really means, how it affects your score, and the habits you can start now to bring this number in line.
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