Episode 12: The Factors That Influence Credit Scores

Financial Progress Podcast

Summary
In this episode of Financial Progress, Chrissy and Jess discuss credit scores and how they can be improved. They explain that credit scores are generated by algorithms that analyze credit reports, with the most commonly used scoring systems being FICO and Vantage. The main factors that influence credit scores include payment history, amounts owed, length of credit history, credit mix, and new credit. They also address frequently asked questions about checking credit scores, the impact of service accounts on credit scores, and actions that can hurt credit scores. The hosts provide tips for improving credit scores, such as making on-time payments, reducing credit card balances, and avoiding unnecessary credit inquiries. They also discuss the option of opening a secured credit card or becoming an authorized user on someone else's account to build credit. The episode concludes with a reminder to subscribe to the podcast and reach out with any questions or topic suggestions.
Takeaways

• Credit scores are generated by algorithms that analyze credit reports
• The main factors that influence credit scores include payment history, amounts owed, length of credit history, credit mix, and new credit
• Consistently making on-time payments, reducing credit card balances, and avoiding unnecessary credit inquiries can improve credit scores
• Opening a secured credit card or becoming an authorized user on someone else's account are options for building credit
• Service accounts like utilities generally don't affect credit scores unless payments are missed and the account is sent to collections

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