Chapter 2: Factors Affecting Credit Score

Table of Content

Understanding Credit Scores

• Overview of what a credit score is and how it's used by lenders.

Payment History

• Importance of making payments on time and how late payments can affect credit score.

Credit Utilization

• How using a high percentage of available credit can negatively impact credit score.

Length of Credit History

• Why having a longer credit history can positively affect credit score.

Types of Credit and New Credit

• How having a mix of different types of credit and recent inquiries can influence credit score.