 TITLE: 4 Simple Habits That Build Good Credit CONTENT: Why Is Having Stellar Credit Important?\n---------------------------------------\nCultivating good credit is key to your overall financial health. With it, you'll have access to a host of helpful financial options. Whether you want to buy a home, finance a car or maintain some extra spending capacity with credit cards, good credit expands your choices. A higher credit score can open the door to more loan and credit card options, lower interest rates and better terms.\nAre you looking to rent an apartment? A good credit score may improve your chances of being approved. Good credit can even help you save on insurance.\nThe exact math used to calculate your credit scores is kept secret, but the factors that help determine them are well-known. The two most common credit scoring models are the FICO® Score☉ and VantageScore®. Their exact algorithms differ, but they both consider similar factors, including:\n*   Payment history\n*   Credit utilization\n*   Length of credit history\n*   New accounts\n*   Credit mix\nTaken together, these factors tell the story of how well you manage credit. This information is important to lenders deciding whether to take you on as a borrower and what rates to offer you if they do. Do you have a history of using credit responsibly and paying it off on time? Are you taking on a lot of debt? Have you defaulted in the past? The answers to these questions help lenders determine how much of a risk you pose as a borrower.\nIf you're planning to apply for credit soon, there are things you can do to \"clean up\" your credit. Paying down debt, taking care of past-due accounts, and continuing to make payments on time are a few examples. There are no quick fixes, though. Maintaining healthy credit practices over time is the simplest route to good credit—and it can help you maintain healthy finances overall as well. END