Understanding Credit Scores
Your credit score is a three-digit number that represents your creditworthiness. Learn how it's calculated, what affects it, and why it matters.
Credit Score Ranges
FICO scores range from 300 to 850. Here's what each range means for your financial opportunities.
Best rates and terms available
Competitive rates and favorable terms
Acceptable rates, some limitations
Higher rates, fewer options
Difficult to qualify, highest rates
What Affects Your Credit Score?
Five key factors determine your FICO score. Understanding these helps you make better credit decisions.
Your track record of on-time payments
How much credit you're using vs. available
How long you've had credit accounts
Variety of credit types you manage
Recent credit inquiries and new accounts
Key Takeaways
Check Your Credit Regularly
Monitor your credit reports from all three bureaus (Equifax, Experian, TransUnion) at least annually to catch errors and track progress.
Pay Bills On Time
Payment history is the most important factor. Set up automatic payments or reminders to ensure you never miss a due date.
Keep Credit Utilization Low
Aim to use less than 30% of your available credit. Lower utilization ratios demonstrate responsible credit management.