The Truth About Credit Scores -- What Really Matters

There's a lot of misinformation out there about credit. So here's what really matters:

• Payment History -- Always pay on time.

• Credit Utilization—The percentage of your total credit that you use. Keep balances under 30% of your total.

• Length of Credit History -- Average age of all credit accounts, the older the better.

• Mix of Credit -- Credit cards, loans, etc.

• New Inquiries -- New credit applications (inquires typically only impact scores for about 12 months)