Thank you for joining this session on understanding your credit report. We explored how credit scores are calculated, what factors influence them, and how you can take practical steps to maintain or improve your score.

Key Takeaways and Next Steps

Know the Score Range

Credit scores range from 300 to 850. A score above 750 usually qualifies you for the best loan terms, though some lenders may look for 800+.

Understand the Five Key Factors

Your score is based on:
Payment history (35%)
Amount owed/credit utilization (30%)
Length of credit history (15%)
New credit (10%)
Credit mix (10%)

Prioritize On-Time Payments

Paying at least the minimum on time every month has the biggest impact on your credit score. Missed or late payments can stay on your report for years.

Manage Credit Utilization

Aim to keep balances below 30% of your available credit (20–30% is ideal). Accepting higher credit limits, if managed responsibly, can help lower your utilization ratio.

Be Cautious with New Credit

Avoid opening multiple new accounts in a short period. Too many new lines of credit may raise concerns for lenders.

Maintain Old Accounts

Keep your oldest credit cards open when possible, since a long history of responsible use strengthens your score.

Protect Yourself from Breaches

Credit reporting agencies have faced data breaches in the past. Consider monitoring your credit reports regularly and using free annual credit reports from AnnualCreditReport.com.