Let’s start by first defining what a credit score is. Essentially, a credit score is a number ranging from 300 to 850 to help lenders determine the likelihood that you’ll pay your loan back to them.
Many factors can impact your credit score. Some more than others, but each aspect is just a piece of the puzzle when lenders look at the risk level associated with lending you their money.
Paying Your Bills – More precisely, paying your bills on time will have a significant impact on your credit score.
Your Debt – The amount of debt you are carrying will also affect your score. There is more to it than the amount of debt, but the easiest way to think about it is the less debt you have, the better.
Credit Card Usage – Credit cards can be a double-edged sword. Using them will help build credit, but too much will hurt your credit score.