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How Credit Scores Actually Work

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How Credit Scores Actually WorkBig idea. Clear explanation.

A credit score summarizes patterns in your borrowing history, especially payment behavior, debt levels, account age, new credit and the mix of credit you use.

Why this matters

Understanding the mechanism makes the idea easier to remember, explain and connect to what you already know.

You now know

  • On-time payments matter Utilization measures how much revolving credit you use Older accounts can help establish history
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