Credit Score Guide

What Is a Credit Score?

A credit score is a three-digit number (300–850) that represents your creditworthiness. Lenders use it to decide whether to approve you for credit cards, loans, and mortgages — and what interest rate to offer.

Credit Score Ranges

What Affects Your Credit Score

• Payment History (35%) — Pay every bill on time. Even one late payment can drop your score significantly.
• Credit Utilization (30%) — Keep balances below 30% of your credit limits; under 10% is ideal.
• Length of Credit History (15%) — Older accounts help. Don't close your oldest card.
• Credit Mix (10%) — Having different types of credit (cards, loans, mortgage) helps.
• New Credit Inquiries (10%) — Limit hard inquiries. Each application can temporarily lower your score by 5–10 points.

How to Improve Your Credit Score

1. Pay on time, every time. Set up autopay for at least the minimum payment.
2. Reduce your balances. Pay down high-utilization cards first.
3. Don't close old accounts. Keep them open for history length.
4. Limit new applications. Only apply for credit you truly need.
5. Check your credit report for errors at AnnualCreditReport.com and dispute inaccuracies.
6. Become an authorized user on a family member's card with a long, positive history.

How Long Does It Take?

Most positive changes take 1–3 months to appear. Recovering from a major negative event (bankruptcy, foreclosure) can take 7–10 years, though the impact diminishes over time.

Next Steps

Ready to pick a card that matches your credit profile? Browse our card comparison tool to find cards that fit your credit score range.