Credit Score Basics: What Affects Your Score and How to Improve It
Your credit score can affect loan approvals, credit card eligibility, and borrowing costs.
What affects your credit score?
- Payment history.
- Credit utilization.
- Length of credit history.
- Credit mix.
Common mistakes
Late payments, maxed-out credit cards, and multiple loan applications in a short period can negatively affect your score.
Bottom line
Healthy credit habits build a stronger score gradually rather than instantly.