Episode 219: 5 Things That Affect Your Credit Score

Your credit score can have a big impact on certain financial decisions such as buying a house or car. Today we talk through how your credit score, or FICO score, is calculated and how you can improve it. While the average credit score in America in 2022 was 714, aiming for higher scores can unlock better financial opportunities. In this episode, David will cover the scores you should be aiming for and how to achieve them.

 

Here’s what you’ll learn in today’s show:

• Why is your credit score so important? (2:21)
• 35% of your FICO score is based on whether you pay on time. (7:24)
• 30% of your score is how much you owe vs. how much you have available. (8:50)
• 15% of your score is how long you’ve had the accounts open. (10:39)
• 10% of your score is opening too many accounts in a short period of time. (13:13)
• 10% of your score is whether you can manage a mix of credit types. (14:06)
• What are some things that don’t actually impact your credit score? (15:44)

 

For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.