Credit Scores 101

When people talk about credit, you might hear phrases like “That’s a good score!” or “You need good credit to get approved.” But what does “good credit” actually mean—and why does it matter? Whether you're thinking ahead to getting your first car, apartment, or even a credit card, understanding what makes credit good can help you make smart financial choices early on.

🔍 What Makes "Good Credit"?

Think of your credit score like a school grade—but for your money habits. The better your behavior, the higher your score. Here's what affects it:

1. 🕐 Payment History (Biggest Factor!)

Do you pay on time? Late payments = 🚩

Even one missed payment can hurt your score.

2. 💳 Credit Utilization

How much of your available credit are you using?

Using more than 30% of your credit can lower your score.

Example: If you have a $1000 limit, try not to go over $300.

3. 🧾 Length of Credit History

How long have you been using credit?

Longer history = more info for lenders to trust you.

4. 🧠 Credit Mix

Do you only have one credit card? Or a mix of cards, student loans, etc.?

Variety can help—but it’s not as important as paying on time.

5. 🔄 New Credit

Opening too many new accounts at once = red flag.

Each new credit inquiry can lower your score just a little.

🌟 A Good Credit Score?

Usually 670 and above is considered “good.”

But the goal isn’t perfection—it’s building healthy habits now, so your score grows with you.

Credit is more than just a number; it’s a tool that can open doors or quietly hold you back. The good news? Building good credit doesn’t have to be hard, especially when you start learning now.