Your credit score is a three-digit number that dictates your financial life. It determines whether you can get a loan, rent an apartment, or even get a job.
What Makes Up Your Score?
- Payment History (35%): Do you pay on time?
- Amounts Owed (30%): Credit utilization ratio.
- Length of History (15%): Age of accounts.
- New Credit (10%): Recent inquiries.
- Credit Mix (10%): Variety of accounts.
How to Check Your Score
You are entitled to a free credit report from each of the three major bureaus (Equifax, Experian, and TransUnion) once a year at AnnualCreditReport.com. Many banks and credit card issuers also provide your FICO score for free on your monthly statement.
Disputing Errors
Mistakes happen. If you see an account you don't recognize or a late payment that you actually paid on time, file a dispute immediately. Removing an error can boost your score significantly in a short amount of time.