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Beginner 12 min

Credit Score Optimization

Your credit score controls the interest rate on everything. Learn what actually moves the needle and what's a waste of time.

Your credit score is a number that banks invented to decide how much to charge you for borrowing money. The higher it is, the less you pay. Simple.

What you'll learn

UtilizationCredit mixInquiriesAuthorized users

Payment history (35%) and credit utilization (30%) are 2/3 of your score. Pay on time, keep utilization under 30% (under 10% for best results). Everything else is noise by comparison.

Credit utilization has no memory. You can run up 90% utilization, pay it off before the statement date, and it won't affect your score. Use this strategically before applying for new credit.

Hard inquiries (10% of score): each one drops your score by ~5 points for a few months. Multiple inquiries for the same type of loan (mortgage, auto) within 14 days count as one. Credit card applications are NOT grouped.

Authorized user strategy: being added as an authorized user on someone else's old, well-managed card inherits their payment history. Can boost a thin file significantly. Works both ways — their mistakes become your mistakes.