Good news! Understanding your credit score is fairly easy and you can use this knowledge to help repair your score and keep it healthy.
35 percent of your score is tied to your payment history. If you haven’t had consistent payment history up until now, don’t panic. Part of the repair process starts with reaching out to creditors and bureaus to get inaccurate, misleading, and outdated information off your report forever.
If your payments are not current, get current and stay current. Creditors will often work with you to create a payment plan so you can get up to date on payments. Making payments on time should be your number one priority. It’s the easiest way to influence your credit score.
30 percent of your score is your credit utilization. Your credit utilization rate is extremely important, and you want it to be under 30 percent. What does that mean? Here’s an example.
You have three credit cards. Each card has as a $1,000 limit. Factoring in no other open credit accounts you have $3,000 in credit available to you. $900 is 30 percent of your $3,000