Speaker 1: What are you going to order? I'm thinking tacos. Hey, have you checked your credit score recently? What? You think I can't afford tacos? No. I was just curious. Oh, you were just... Well, yeah, I have checked it recently, and I got, like, a hundred, you know, which my guy says it's one of the highest scores he's ever seen, so, you know, Taco Tuesday, here I come. What? You don't like tacos or something? No. Your guy? Come on. Everyone knows that the highest credit score that you can get is 1,000. That's what I meant. I messed up the words. It was a flub. You know, when I said 100, I just forgot the other zero. Different word. 1,000 credits is what I meant to say. Totally got 1,000 credits.

Speaker 2: Okay, so to be clear, credit scores don't go up to 1,000. The scale runs from 300 to 850, and while I'm at it, there are a few other things you should know, too. A credit score is a portrait of someone's credit history, made up of several factors that we'll cover in a moment. This number is placed on a scale that helps prospective lenders evaluate how likely you are to pay your debts. This in turn determines what kinds of loans you can get. There are five factors that determine your score, and they all have varying levels of importance. Credit history is the most important piece of your credit profile, and it accounts for roughly 35% of your score. Makes sense, too. If you've been responsible in the past, you can probably be trusted in the future. So avoid late payments at all costs. Amounts owed, or credit utilization, is the second most important factor, coming in at about 30% of your score. Now, this part is important because notching a good credit score doesn't mean that you don't borrow. In fact, not using your credit is almost worse than using tons of it. You want to show that you can handle a reasonable amount of debt without going off the rails. One of the more obvious factors in a credit score is the length of your credit history, which accounts for 15% of your number. It's like in those old movies where a shop owner lets one of his regulars run up a tab because he knows he's good for it. Same goes with credit. The longer you've been borrowing, the better. Additionally, types of credit and new credit each account for 10%. Types of credit reviews how many sources of borrowing you use, like a car loan, mortgage, and credit card. The more diverse, the better. New credit takes into account how often you take on credit you don't need, like applying for a credit card at five of your favorite new stores. So while you can't have a credit score of 1,000, you can make sure you're taking the right steps toward a great credit score. Come to think of it, I think tacos do sound pretty good right about now.