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Understanding the Basics of a Credit Score
Before diving into ways to improve your credit score, it’s important to understand what a credit score is and how it’s calculated. Your credit score is a three-digit number that represents your creditworthiness. It is determined by several factors, including:

Payment History (35%): Whether you make payments on time.
Credit Utilization Ratio (30%): How much of your available credit you’re using.
Length of Credit History (15%): The age of your credit accounts.
Credit Mix (10%): The variety of credit accounts you have (credit cards, loans, etc.).
New Credit Inquiries (10%): How many new credit applications you’ve made recently.

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