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Why do credit scores matter so much?
Judy avatar
Written by Judy
Updated over 3 years ago

Credit scores are a quick and standardized way to understand a person’s creditworthiness. While each credit reporting agency (Equifax, Experian and TransUnion) has its own formula, there are 5 factors that make up your score: credit history, payment history, types of credit, new accounts, and amount owed. All of these factors matter to lenders when they are trying to evaluate whether to lend to you and how much.

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