Credit Scores — Practice Questions

Credit ScoresPersonal Finance Basics — The number lenders use to decide if they trust you.Your credit score is a single number, roughly 300 to 850, that tells lenders how trustworthy you are as a borrower. A higher score unlocks loans at lower interest rates, which can save thousands.What moves the score

Payment history: paying on time is the single biggest factor.

Credit utilization: how much of your available credit you use. Lower is better, often under 30 percent.

Length of credit history: a longer track record helps.

New credit and mix: many new applications at once can ding it.

Hard vs soft inquiry: A hard inquiry (applying for new credit) can lower your score slightly. A soft inquiry (checking your own score) does not.Closing your oldest card can actually hurt your score by shortening your history and cutting your available credit.15 practice questions with explanations. Free, and no account is needed to start.