You’ve got big plans for the future.

Owning a home, renting an art studio, starting a business.

Keeping an eye on your credit score helps you keep an eye on the prize.

Having good credit means you’re more likely to receive the loans you need to achieve your dreams.

There are a lot of factors that go into improving your credit, but here are two easy places to start.

First, keep your credit card utilization low.

That means you probably shouldn’t max out your card every month.

Second, pay off your credit card debt on time.

You can set up automatic payments to make sure you never miss a bill.

Do you know what makes up all the different factors of a credit score? No.

Sometimes I don’t either.

They’re really hard to remember.

Credit score.

Isn’t that based on like if you have credit….

That means you’re paying the lenders back on time and everything like that, right? I don’t even have a credit card.

I use my debit for everything.

What’s funny is that actually up until about a month ago, I’m 23 years old and I had never had a credit card.

This will be a fun one because you’re not from the United States.

What is a credit score, how did you find out about it? I found out about a credit score through my girlfriend.

What for you is a good credit score? Anything over 800 is a good credit score for me.

Isn’t 700 good? Is that good or is that bad? I’m not too knowledgeable about that.

700 is a good score.

It's a good score to have.

If you were to take a guess, what is the national average? Maybe 650? 675 maybe? That is actually very, very close! I think it was… It hovers a little bit because there are so many ways to check your credit score.

I think it’s hovering around 695 right now.

Which are the two factors of your credit that have the highest impact on your score? Bills and I dunno? That’s actually a really good guess! Yeah, bills.

On-time payments, that is one of them.

Then the other is keeping your credit utilization low.

So that’s like not maxing out your credit card every single time.

Taking these steps can put you on a path to get the key to that new house, to set up shop in that studio, or to open the doors of your new business.