What makes up your credit score?

For many people, credit scores can be intimidating and confusing, involving complex numbers and difficult calculations. The thing is, they’re also important: credit scores can have a major impact on your finances—especially down the road, when you’re applying for a credit card, car loan, or mortgage.

What is a credit score?

Simply put, a credit score is a measure of your credit worthiness, or reliability as a borrower. Lenders look at your score to see how likely you are to repay money that you borrow. They also use your score to better understand the state of your finances, including your payment history, the length of your credit history, how much credit you are using, your total debt and other factors.

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