Your credit score is a three-digit number, usually between 300 and 850, that summarizes how risky you look to lenders based on your credit history. It doesn't measure your income, your savings, or your net worth — only how you've handled borrowed money in the past. Understanding what actually moves that number is the first step toward controlling it instead of being surprised by it.
What a credit score actually measures
The two most widely used scoring models in the United States are FICO and VantageScore. Both pull data from your credit reports at the three major credit bureaus — Equifax, Experian, and TransUnion — and convert it into a single number lenders use to estimate the likelihood you'll repay debt on time.
Good to know
The five factors that determine your score
FICO, the most commonly used model, breaks your score down into five weighted categories. Knowing the weight of each one tells you exactly where to focus your effort.
| Factor | Approximate weight | What it measures |
|---|---|---|
| Payment history | 35% | Whether you've paid past accounts on time |
| Amounts owed | 30% | Your total debt and credit utilization ratio |
| Length of credit history | 15% | Average age of your accounts |
| Credit mix | 10% | Variety of account types (cards, loans, etc.) |
| New credit | 10% | Recent applications and newly opened accounts |
What counts as a good credit score
- Exceptional: 800–850
- Very good: 740–799
- Good: 670–739
- Fair: 580–669
- Poor: 300–579
Most lenders consider a score of 670 or above to be a reasonable approval threshold for standard credit products, though the exact cutoff varies by lender and by the type of credit you're applying for. Scores above 740 generally unlock the best interest rates available.
Practical habits that raise your score
- Pay every bill on time, every time — set up autopay for at least the minimum due so a single missed payment doesn't undo months of progress.
- Keep your credit utilization below 30%, and ideally under 10%, on both individual cards and across all cards combined. Our Credit Utilization Calculator can show you exactly where you stand.
- Avoid closing your oldest credit card, since doing so can shorten your average account age and reduce your available credit.
- Only apply for new credit when you actually need it — each hard inquiry has a small, temporary impact on your score.
- Check your credit reports at all three bureaus at least once a year and dispute any errors you find.
Where to check your score for free
How long negative marks stay on your report
Most negative items, including late payments, collections, and charge-offs, remain on your credit report for seven years. Chapter 7 bankruptcy can stay for up to ten years. The impact of a negative mark fades over time even before it's removed, especially if you build a strong track record of on-time payments afterward.
