Your credit score is a number (commonly 300–850) that lenders use to estimate how likely you are to repay borrowed money. Higher is better, and it's built from the information in your credit reports. Here's what actually drives it.
The five things that shape your score
- Payment history (biggest factor): whether you pay on time. One missed payment can hurt for a long time.
- Credit utilization: how much of your available credit you're using. Under ~30% is good; under 10% is better.
- Length of credit history: how long you've had accounts. Older is better, so keep old cards open.
- Credit mix: having different types of credit (cards, loans) can help a little.
- New inquiries: applying for lots of credit at once can ding your score temporarily.
How to build or improve it
- Pay every bill on time — set autopay for at least the minimum so you never miss.
- Keep balances low relative to your limits; pay down before the statement closes if you can.
- Keep your oldest accounts open to preserve your history length.
- Apply for new credit sparingly and only when you need it.
- Use a card that reports to all three bureaus so your good habits actually count.
Common myths
- “Carrying a small balance helps.” False — you can pay in full and still build credit. Carrying a balance just costs you interest.
- “Checking my own score hurts it.” False — checking your own score is a soft pull and never affects it.
- “Closing a card helps my score.” Usually the opposite — it can raise your utilization and shorten your history.
This is general educational information, not financial or credit-repair advice. For help with your specific situation, consider a certified nonprofit credit counselor.