Students should be familiar with credit scores, according to KHEAA.\r\nYour credit score is a three-digit number that has a long-lasting effect on your buying power. When you apply for credit, your credit score will be checked. The higher your credit score, the better the chances you will be approved.\r\nAlthough there are several scoring methods, the most widely accepted one comes from FICO. Your FICO score ranges from 300 to 850. These items make up your FICO score:\r\n\u2022 35 percent of is based on your payment history. Early payments will have a higher number than on-time payments, which will have a higher score than late payments.\r\n\u2022 30 percent is based on outstanding debt. This outstanding debt is how much you owe on car loans, mortgages, credit cards, etc. The number of credit cards you have and if those cards are near the maximum borrowing limit will hurt your score.\r\n\u2022 15 percent is based on the length of time you have had credit. The longer you have been borrowing money and paying it back in a timely manner, the better your score.\r\n\u2022 10 percent is based on new credit. If you have opened several new accounts, that will have a negative effect on your score. Also, the more inquiries on your credit report in a year, the lower your score.\r\n\u2022 10 percent is based on the types of credit you currently have. It helps to have a mix of loan types. If you have a credit card, an installment loan will even the credit out.\r\nKHEAA is a public, non-profit agency established in 1966 to improve students\u2019 access to college. It provides information about financial aid and financial literacy at no cost to students and parents.