FARNOOSH: Did you know that your credit score is only as good as your credit report? FARNOOSH: It’s true, credit score calculators use the info on your credit report to crank out your score – that key number between 300 and 850 that represents your credit worthiness. A high score can help you achieve the best terms and interest rates on loans and credit cards. But what is actually behind this number? We asked New Yorkers. achieve the best terms and interest rates
on loans and credit cards. But what is actually behind this number? We asked New Yorkers. FARNOOSH So now what’s actually behind your credit
score? NEW YORKER 1: Um, I guess just paying your bills on time. NEW YORKER 2: It’s your payment history. NEW YORKER 3: The amount of credit that you have. NEW YORKER 4: And the number pretty much determines how
good or bad your credit is. FARNOOSH: It’s part of it, it’s part of it, yeah. FARNOOSH: What’s the most important factor on your
credit report that weighs on your credit score? Is it A) payment history, B) credit utilization,
or C) having a variety of different types of credit. NEW YORKER 4: Hm, I’ll say A. NEW YORKER 3: God, they’re all crucial. NEW YORKER 5: C, variety of different types of credit? NEW YORKER 6: Uh, it’s either A or C, I’m going to go
with A. FARNOOSH: The answer is A, payment history. If your credit report shows a trail of accounts that have been paid consistently on time, that’s a huge help. On the flip side, a bankruptcy, which can stay on your report for up to ten years, can set you back big time. Altogether, payment history is 35% of your credit score. For Chase Slate, I’m Farnoosh Tarabi.