Credit scores are calculated using several factors:
Payment History: On-time payments improve the score, while missed payments can significantly lower it. Credit Utilization: This is the ratio of current credit debt to total available credit. Lower utilization suggests better credit management. Length of Credit History: Longer credit histories generally contribute to higher scores. Types of Credit: Having a mix of credit types (credit cards, loans, etc.) can positively impact the score. Recent Credit Inquiries: Multiple inquiries in a short period can lower the score.
