We've discussed good credit habits in the past, but the way your credit score is weighted and how you can improve it can still be a murky topic. This short video from The Washington Post explains in easy-to-understand terms, using delicious apple pie as a guideline.
Of course, few people really know how your credit score is calculated—FICO is notoroiously secretive about it, and while many people may have a good idea, few really know (or are willing to tell). Either way, it's more important to understand what factors play a role in how your score is calculated that you actually have control over. In the video, FInance columnist Michelle Singletary explains that paying your bills on time is—as you likely expected—the most important thing you can do to boost or maintain your credit score.
Luckily, most credit card companies are willing to change due dates for you if you want to make sure that, for example, your due date is closer to payday, so you're not tempted to spend away that card payment. From there, the next biggest chunk is your debt-to-credit ratio, or your debt burden—how much debt you're carrying. The rest are things like the length of your credit history, the types of accounts you have, and recent inquiries. While there's often a lot of focus on those last ones, the video makes it clear the first two are more important.
Your Credit Score, Explained with Apple Pie | The Washington Post