Nurture Your Credit: Know the 2 Credit Categories that Matter the Most When Calculating Your Score

When it comes to nurturing your credit score, you need to know the key categories used to calculate it. Only then can you most effectively nurture your score.

So, if you’re looking to rent a better apartment, trying to get the best deal on an auto loan, or shopping around for a credit card with low APR, here are two key credit categories that matter the most when calculating your score:

(1) Payment History – Your credit reports will show if you consistently paid your bills on time. So, don’t be late, and if you can, set up auto pay or reminders so that you don’t miss a payment.

(2) Credit Utilization – You want to keep your credit utilization rate – or how much credit you’re using – below 30%. You can calculate your credit utilization by dividing your balance by your credit limit.

If you’re renting, did you know that you can nurture your credit score by having your on time rent payments reported to the credit bureaus? Solutions like RentReporters can help you build and improve your score by reporting your payments to TransUnion.

Back to Blog