How credit scores work
Your credit score is a number that predicts whether you'll pay a loan back on time. It's built from your credit report. Paying on time matters most, followed by how much of your credit limits you use.
What to know
- Payment history counts most. FICO weighs it at about 35% of your score (myFICO), and the CFPB says most scores treat it as the number one factor (CFPB). Autopay the minimum on every account so a busy week never becomes a late payment.
- How much you owe comes next, about 30% (myFICO). Scoring models look at how close you are to your limits. The CFPB says experts advise using no more than 30% of your total limit (CFPB).
- Length of history is about 15% (myFICO). Older accounts help, so think twice before closing your oldest card.
- New credit (10%) and credit mix (10%) are smaller (myFICO). Applying for a lot of credit in a short time can look like you're in trouble (CFPB).
- You don't need to carry a balance to build a score. Paying in full each month gets you the best scores and keeps interest low (CFPB).
See it done
What is a credit score?Khan Academy
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Good to know
The range
Most FICO scores range from 300 to 850, and higher is better (myFICO).
You have more than one score
Different companies and versions calculate scores differently, so the number your bank shows may not match what a lender sees. A score is a prediction based on your credit reports, so keep the reports accurate (CFPB).
New to credit?
The CFPB points to products built to help you start, like secured credit cards and credit-builder loans (CFPB).
Found an error?
You can dispute it online, by mail or by phone with each bureau. See Disputing errors on your report.
Sources
- myFICO What's in my FICO Scores?
- myFICO Credit scores
- Consumer Financial Protection Bureau How do I get and keep a good credit score?
- Consumer Financial Protection Bureau What is a credit score?
- Consumer Financial Protection Bureau Does checking my credit report hurt my credit score?
Lesson M4.1 · Last checked October 2, 2026 against the sources listed. See a mistake?
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