Credit Score
A three-digit number that decides what you pay to borrow - and it mostly comes down to a few habits.
Last reviewed September 2026
Credit by the Numbers
Most lenders use a FICO Score, so these figures are FICO's unless noted.
Both FICO and VantageScore use this range. Roughly: 670+ is "good," 740+ "very good," and 800+ "exceptional."
Source: myFICO
Down 2 points over the past year, partly because missed student loan payments are being reported again.
Source: FICO Score Credit Insights, 2026
The single biggest factor in a FICO Score. One payment 30+ days late can drop a good score significantly.
Source: myFICO
Most negative items, including late payments and collections, can stay on your report for up to seven years. Their impact fades over time, especially once you're back on track.
Source: CFPB
Core Concepts
Six ideas that explain how scores work and how to improve one.
Your report vs your score
Your credit report is the record of your accounts and payments, kept separately by three bureaus: Equifax, Experian, and TransUnion. Your credit score is a number calculated from a report. You have many scores, since there are several scoring models and three reports - which is why the number varies depending on where you check.
Why it matters
Your score affects the interest rate on a mortgage, car loan, or credit card - and a difference of a point or two on the rate can mean thousands of dollars over a loan. Landlords, insurers (in most states), and some employers also look at credit.
Pay on time, every time
Payment history is the biggest factor. Set every bill to at least autopay the minimum so nothing slips. A payment usually isn't reported late until it's 30 days past due - if you miss a due date by a few days, pay right away and you'll typically owe a late fee, not take a credit hit.
Keep card balances low
Utilization - how much of your credit card limits you're using - is the next biggest piece. A common guideline is to stay under 30%; people with the highest scores are often under 10%. It's based on the balance your statement reports, so paying before the statement closes can help, even if you pay in full every month.
Check your reports for free
You can get free reports from all three bureaus every week at AnnualCreditReport.com - the official site. Look for accounts you don't recognize and payments wrongly marked late, and dispute errors with the bureau. Checking your own credit never hurts your score.
Freeze your credit
A credit freeze stops anyone from opening new credit in your name, and it's free at each bureau. It doesn't affect your score or your existing cards. Unfreeze it temporarily (usually online, in minutes) when you apply for a loan or card yourself.
What Goes Into Your Score
FICO's published breakdown. The exact weights vary from person to person, but this is the general picture.
| Factor | Weight | Helps | Hurts |
|---|---|---|---|
| The big two - about two thirds of the score | |||
| Payment history | 35% | A long record of on-time payments on every account | Payments 30+ days late, collections, bankruptcy |
| Amounts owed | 30% | Low credit card balances relative to your limits | Maxed-out or nearly maxed-out cards |
| Smaller factors | |||
| Length of credit history | 15% | Older accounts, kept open and in good standing | Only very new accounts; closing your oldest card can shorten your history over time |
| New credit | 10% | Applying only when you need to | Several applications in a short time (each hard inquiry is a small, temporary dip) |
| Credit mix | 10% | Having both cards and installment loans (car, student, mortgage) | Rarely worth taking on a loan just for this |
| Not in your score | |||
| Income, savings, job, age, address | 0% | Lenders may ask about these separately, but they aren't part of the score. Neither is checking your own credit. | |
Key Terms
The words on your credit report and in card offers.
Scores
- FICO Score
- The score most lenders use. There are several versions, and mortgage and auto lenders often use their own.
- VantageScore
- A competing score created by the three bureaus, often shown by free credit apps. It usually lands near your FICO Score, but not exactly.
- Thin file
- Too little credit history to produce a reliable score. A secured card or being added as an authorized user is a common way to start.
Applying
- Hard inquiry
- When a lender checks your credit because you applied. It stays on your report for two years, but FICO only counts it for one.
- Soft inquiry
- Checking your own credit, pre-approval offers, and some employer checks. No effect on your score.
- Rate shopping
- Several mortgage, auto, or student loan applications within a short window (14-45 days, depending on the score version) count as a single inquiry, so you can compare lenders.
Accounts
- Credit utilization
- Your card balances divided by your card limits, both overall and per card. Try the calculator below.
- Secured credit card
- A card backed by a cash deposit, usually equal to the limit. Used to build or rebuild credit.
- Authorized user
- Someone added to another person's card. The account's history can show up on their report too - good if it's paid on time, bad if it isn't.
Credit Utilization Calculator
Enter each credit card's limit and current balance to see your overall and per-card utilization, and how much to pay down to reach common targets.
Simplified: scoring models don't publish exact cutoffs, so the ratings here are common guidelines, not what any one score uses. Use the balance from your latest statement, since that's usually what gets reported. Results update as you type.
| Card | Utilization | Pay down to 30% | Pay down to 10% |
|---|
Carrying balances you want gone? The Debt page has a payoff calculator - paying cards down helps your score and saves on interest at the same time.