Credit 101


Key Things To Maintaining An Acceptable Credit Score: 

  • Credit Card Utilization
  • On Time Payments
  • Years of Credit
  • Inquiries

What determines your credit score:

  • Payment History – 35%
  • Amount Owed – 30%
  • Length of Credit History – 15%
  • New Credit – 10%
  • Types of Credit – 10%

Why Is Credit Utilization So Important?

Every factor of credit scoring is crucial, but credit utilization is responsible for 30% (Amount Owed) of your overall score. Credit utilization measures your revolving balances against your total credit limit. Lenders and credit card issuers rely on credit utilization to predict risk. In general, the higher your utilization ratio, the greater your risk of defaulting on your balances. You will definitely see a decrease in your scores as your utilization ratio goes up.

Credit is what makes the world go round. If you have great credit, life is grand. If your credit is pretty bad, life is not so grand. Most make the same mistakes when it comes to credit, and it all boils down to lack of knowledge and in my opinion maturity. Not sure if this is still a thing, but when I went to college credit card companies were out like vultures signing kids up for credit cards. The beginning of a very long journey for many with financial problems.

It is important to always know where you stand with your credit report. The reason behind knowing is to make sure things are accurate. Also to celebrate when you see your accomplishments! Many times fraudsters get ahold of our information, and if you aren’t monitoring you could never know until you go buy your dream house, and you’re denied! A great free option for checking your score is Credit Karma.

A fair credit score is considered in the range of: 640-700, a good score falls in the range of 700-850. Your credit score is reported through two credit bureaus, via Credit Karma; TransUnion, and Equifax.  The higher your score the better interest rates you will receive when financing items. It shows merchants, you are credit worthy.

💡Try to only use 10% of your credit card limits, the lower the better.

💡Pay all of your bills on time, if you can’t call and make an arrangement. Late payments ding your score.

💡When you apply for any type of credit make sure you are certain. The more inquiries you have on your report gives you a ding as well.

💡Credit should only enhance a temporary situation, do not spend more than you can afford.

💡Many Financial Institutions run your profile through Equifax.

💡Look for errors and dispute if necessary.

💡Keep old Credit Cards open


Equifax Data Breach Information –

Sharing is caring!