How your credit score works
A credit score is a number (300–850 on the FICO scale) that predicts how likely you are to repay. Understanding what moves it is the whole game — and it costs nothing to work on.
Education only — not financial or legal advice, and we sell nothing. Everything a paid “credit repair” service does, you can do yourself for free with the tools below.
What the score is made of
Payment history35%
Do you pay on time? The single biggest factor. One 30-day-late mark can drop a good score sharply.
Amounts owed (utilization)30%
How much of your available credit you use. Keep utilization under 30% — under 10% is better. It resets each month, so it is the fastest lever.
Length of credit history15%
The age of your accounts (average and oldest). Time helps — which is why closing an old card can hurt.
Credit mix10%
A mix of types (a card, an installment loan) helps a little. Never take on debt you do not need just for the mix.
New credit / inquiries10%
Hard inquiries from applying for credit ding you a little and fade within a year. Rate-shopping for one loan in a short window usually counts as one.
The ranges
| Range | Score | What it means |
|---|---|---|
| Poor | 300–579 | Approvals are hard and terms are worst; secured cards and on-time payments are the way up. |
| Fair | 580–669 | Below the U.S. average; some approvals, higher rates. |
| Good | 670–739 | Around/above average; most approvals at fair rates. |
| Very Good | 740–799 | Better-than-average rates and limits. |
| Exceptional | 800–850 | Top tier; the best rates available. |
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