A credit score is a short summary of your credit file. Lenders use it to estimate how likely you are to repay on time. It is not a grade of your character or a measure of your income, and the file it is built from only records how you have handled credit.
What goes into the score
The FICO model, the most widely used, weighs five areas. The weights are published as a guide and apply to the typical person.
- Payment history35%
Whether you pay on time
- Amounts owed30%
How much of your limit you use
- Length of history15%
The age of your accounts
- New credit10%
Recent applications and new accounts
- Credit mix10%
The kinds of credit you have
Habits that move the number
Pay on time, every time
A single late payment reported to the bureaus can hurt for years. Set up automatic payments for at least the minimum.
Keep balances low
Use a small share of each limit. See credit utilization.
Let accounts age
Keep your oldest card open if it has no fee. Time is hard to buy.
Apply with care
Each application can create a hard inquiry. See soft and hard inquiries.
Helps your score
- A long record of on-time payments
- Low balances compared with your limits
- A mix of credit used responsibly
Hurts your score
- Payments 30 or more days late
- Balances close to your limits
- Several new accounts opened in a short time
What a good number looks like
Lenders set their own cut-offs, and the same score can win a card at one bank and lose it at another. Scores are often grouped into bands from poor to excellent. Moving up a band tends to lower the interest you are offered, but the exact line depends on the lender and the product.
Common myths
"Checking my score lowers it." Looking at your own score is a soft inquiry and has no effect.
"I need to carry a balance to build credit." You do not. Paying in full builds the same history and costs no interest.
"Closing old cards helps." It often hurts, because you lose that card's limit and its age.
"Everyone has one score." There are many models, and lenders pick their own.
Aim for steadiness. A file with years of calm, on-time payments and modest balances beats any short-term trick, and it is what lenders trust the most.
Questions people ask
Do I have just one credit score?
No. There are many scoring models, from FICO and VantageScore, and each lender chooses one. Your score can differ a little between them, although they usually move in the same direction.
How long does it take to see a change?
Lenders usually report to the bureaus once a month, so a change in your habits typically shows within one or two billing cycles. Building a long history takes years.
Sources
Written from these pages and checked against them on October 5, 2026. Programs and rules change, so check the provider’s current terms before you decide.
General information, not financial, legal or travel advice. Your own card terms and the provider’s current rules always come first.