• Finance

    How Credit is Calculated and How to Improve Credit

    One of the most important measures of your creditworthiness is your credit scores. A credit score is a three-digit number that ranges between 300 and 850. The higher your credit, the lower your risk to lenders while the lower your credit, the higher your risk to lenders. Understanding how the credit score is calculated and what impacts it will take you a step closer to improving your credit. The five factors of credit The credit score comprises of five factors and the calculation is based on these five factors. The payment history This accounts for 35% of your credit score. It shows if your payments are made on time, it also shows…