With so much riding on your credit score, it's important to understand what counts as a good credit score and how to get one.
Here's the full breakdown of how FICO and VantageScore crunch your credit score:FICO VantageScore Payment history (35%) Credit balance (30%) Length of credit history (15%) New credit (10%) Mix of credit accounts (10%) Payment history (35%) Length & type of credit (30%) Credit utilization (20%) Credit balances (11%) Recent applications (5%) Available credit (3%)The most significant aspect of your credit score is your payment history, which looks at how consistently you've made payments.
However, hard inquiries stop factoring into your credit score after a year and drop off your credit report entirely after two years, so they don't permanently influence a credit score.
That's why the average credit score among Gen Z is 680 compared to the average baby boomer, who has a 745 credit score.
Good credit score frequently asked questionsAre good credit scores hard to get?
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