Better Credit With One Simple Rule
Last week we started our series on building your financial reputation with credit reports. This week, we’re diving into your credit score: the single number (sort of) that tries to summarize all of that information in your credit report. Your score plays a major role in your ability to reach big milestones like buying a home. Understanding how it works is the first step toward making your score an asset rather than an obstacle.
The most effective way to build and maintain a high score is straightforward: pay every bill on time. Payment history is the most influential factor in your score calculation. Even one late payment can cause a significant drop and remain on your record for years.
To learn more about optimizing your score (and why you actually have multiple credit scores, not just one) check out these guides: