A credit score is a three-digit number that lenders use to decide whether to lend you money and how much interest to charge
Your credit score ranges from 300 to 850. The higher the number, the lower the risk you appear to a lender. Banks, credit card companies, landlords, and sometimes employers look at this number to make decisions about you. The score is built from your credit history — the record of how you have borrowed and repaid money over time.
You do not have one credit score. You have three, because three different companies collect credit data: Equifax, Experian, and TransUnion. These are called credit bureaus. Each one may have slightly different information about you, so your score can vary by 50 points or more between them. Lenders may check one bureau, all three, or a blend of all three.
Key Takeaways
- Your credit score is a number between 300 and 850 that reflects how reliably you have repaid borrowed money in the past.
- Three separate credit bureaus — Equifax, Experian, and TransUnion — each maintain their own version of your credit history and may calculate slightly different scores.
- Your score is built from five main factors: payment history, amounts you owe, length of credit history, new credit inquiries, and the mix of credit types you use.
- You can obtain your credit report for free once per year from each bureau through AnnualCreditReport.com, which is the official government site.
The five things that make up your credit score
Payment history is the largest piece — about 35 percent of your score. This is whether you paid your bills on time. A single late payment can lower your score, and the later the payment, the bigger the damage. A payment 30 days late hurts less than one 90 days late. Payments that are more than seven years old stop affecting your score.
Amounts you owe makes up about 30 percent. This is how much money you currently have borrowed compared to your credit limits. If you have a credit card with a $5,000 limit and a $4,500 balance, you are using 90 percent of that limit. Using more than 30 percent of your available credit lowers your score, even if you pay on time. Paying down balances raises your score faster than almost anything else.
Length of credit history is about 15 percent. This is how long you have had credit accounts open. Older accounts help your score. Closing old accounts can hurt it, even if you are not using them, because it shortens your average account age.
New credit inquiries and accounts make up about 10 percent. When you apply for a loan or credit card, the lender checks your credit — this is called a hard inquiry. Multiple hard inquiries in a short time can lower your score slightly. Opening many new accounts at once also signals risk to lenders.
Credit mix is the remaining 10 percent. Lenders like to see that you can handle different types of credit: credit cards, car loans, mortgages, and personal loans. If you only have credit cards, your score may be lower than someone with the same payment history who also has a car loan.
What counts as good, fair, and poor
Most lenders use these ranges, though some may set their own cutoffs. A score of 670 and above is generally considered good enough to get a loan or credit card, though not at the best rates. A score below 580 makes borrowing much harder and more expensive.
| Score Range | What It Means |
|---|---|
| 300–579 | Poor. Most lenders will decline you or charge very high interest rates. |
| 580–669 | Fair. You may be approved but at higher interest rates than someone with a better score. |
| 670–739 | Good. You will likely be approved at reasonable rates. |
| 740–799 | Very good. You will be approved at competitive rates. |
| 800–850 | Excellent. You will be approved at the best available rates. |
These ranges are based on the FICO score model, which is the most common. Other models exist — VantageScore is another — and they may use different ranges. When a lender tells you your score, ask which model they used.
How to get your credit report and score
You have a legal right to one free credit report per year from each of the three bureaus. Go to AnnualCreditReport.com, which is the official government site run by the three bureaus. You can order all three reports at once or spread them out over the year. The site will ask you to verify your identity by answering questions about your credit history.
The free report does not include your credit score — only your history. To see your actual score, you have several options. Many credit card companies and banks now show your score for free in your online account. You can also buy your score directly from the bureaus or from services like Credit Karma or Credit Sesame, though these are often free because they make money from lenders who use them to target you with offers.
When you get your report, read it carefully. Look for accounts you do not recognize, payments marked late that you know you made on time, or duplicate entries. Errors are common. If you find one, contact the bureau in writing and ask them to investigate. They must respond within 30 days.
How long negative information stays on your report
Late payments stay on your report for seven years from the date you missed the payment. Bankruptcy stays for seven to ten years depending on the type. Collections accounts stay for seven years from the date of the original missed payment, not from when the collection agency bought the debt. Paid-off accounts can stay on your report indefinitely, which is actually good for your score because they show a history of repayment.
After negative information falls off your report, it no longer affects your score. However, it may still be legally collectable — meaning a creditor or collector can still sue you. The time limit for that is called the statute of limitations and varies by state and type of debt, usually between three and ten years.
What does not affect your credit score
Your income, employment history, and savings do not appear on your credit report and do not affect your score. Neither do utility bills, rent payments, or insurance premiums — unless you fall behind and the company sends you to collections. Checking your own credit report does not hurt your score; that is called a soft inquiry and lenders cannot see it.
Your race, gender, marital status, and age are not factors. Lenders are legally forbidden from using these in lending decisions. If you believe a lender has discriminated against you based on a protected characteristic, you can file a complaint with the Consumer Financial Protection Bureau.
Frequently Asked Questions
Can I improve my credit score quickly?
Paying down credit card balances is the fastest way to raise your score — you may see movement within one or two billing cycles. Paying all bills on time going forward also helps, but the effect builds over months and years. There is no legitimate way to raise your score overnight.
Does checking my own credit score hurt it?
No. When you check your own credit, it is a soft inquiry and does not appear to lenders. Only hard inquiries — when a lender checks your credit because you applied for something — affect your score.
What if I see an error on my credit report?
Contact the credit bureau in writing and describe the error. Include copies of documents that prove it is wrong. The bureau must investigate within 30 days and remove it if they cannot verify it is accurate. You can also dispute the error directly with the creditor who reported it.
Does closing a credit card help my score?
Usually not. Closing a card lowers your available credit, which raises your credit utilization ratio and can hurt your score. It also shortens your average account age. Keeping old cards open and unused is better for your score than closing them.
How often does my credit score change?
Your score can change every time the credit bureaus receive new information — which happens monthly when creditors report your account activity. Significant changes in your balances, new accounts, or late payments can shift your score within weeks.