Credit Score Components
This component is 35% of your credit score.
What is payment history?
A higher credit score typically means you'll be able to borrow money at this type of interest rate
What is a lower interest rate?
This is an excellent first step to building a credit history and involves borrowing money and paying it back on time, typically in small amounts.
What is a secured credit card?
Checking this periodically can help you spot errors that might harm your score.
What is your credit report?
This type of loan is used to buy a car.
What is an auto loan?
This component is 30% of your credit score.
What is amounts owed?
If your credit score is below this number, you may be classified as a subprime borrower and face higher interest rates.
What is 600?
This is one way to begin building credit if you're under 18.
What is being an authorized user?
Your credit score can be improved by paying off debt and keeping this ratio low.
What is your credit utilization ratio?
This type of loan is used to buy a house.
What is a mortgage?
This component is 15% of your credit score.
A credit score below 580 is generally considered this by lenders.
What is poor credit?
One key benefit of building a credit history at a young age is that it allows you to establish this, which can save you money on future loans.
What is a good credit score?
If you've missed a payment, it's best to do this as soon as possible, as the longer it's delayed, the worse it impacts your score.
This type of loan is used by college students.
What is student loans?
This component is 10% of your credit score and involves payment history.
What is credit mix?
This could happen if you default on a loan or make late payments, resulting in a significant drop in your credit score.
What is damage to your credit score/lowering your credit score?
These accounts typically have lower credit limits and are good for those with no credit history, helping them establish their score.
What is a student credit card?
This type of credit report error can occur if someone fraudulently opens an account in your name, and it's crucial to fix it quickly.
What is identity theft?
This type of loan is used by businesses.
What is a business loan?
This component accounts for 10% of your credit score and is evaluated based on the history of the last 12 months.
What is new credit?
A credit score below this number often results in higher loan rates, higher insurance premiums, and difficulty renting apartments or securing credit.
What is 650?
By having a long, positive history with this type of credit, you can increase your credit score over time.
What is a credit card
This type of inquiry happens when a lender checks your credit to decide if you're eligible for a loan or credit card.
What is a hard inquiry?
This type of loan is used to help with debt, home improvements, medical expenses, etc.
What is a personal loan?