Credit score explainer
A Credit scoreA three-digit number that shows lenders how likely you are to pay back money you borrow.More in the glossary is a number lenders use to guess how likely you are to pay back a loan. It's built from what's in your Credit reportA record of your borrowing and bill-paying history, kept by companies called credit bureaus.More in the glossary.
This page shows what counts the most, and lets you check one thing you can change quickly: how much of your credit card limits you're using. It doesn't ask for or guess your score.
What goes into a credit score
The most common score, the FICO Score, looks at five kinds of information.
Payment historyabout 35%
Whether you've paid your bills on time. This counts the most.
What helps: Pay at least the Minimum paymentThe smallest amount you can pay on a bill, like a credit card, without being charged a late fee.More in the glossary by every due date. Automatic payments or reminders help. If you've fallen behind, getting current and staying current helps over time.
Amounts owedabout 30%
How much you owe, especially how much of your credit card limits you're using. That's called Credit utilizationHow much of your credit card limits you're using right now, shown as a percent.More in the glossary.
What helps: Keep card balances low compared with your limits. Use the calculator below to check yours.
Length of credit historyabout 15%
How long you've had credit, including your oldest account and the average age of all of them.
What helps: Time. Think twice before closing your oldest card, especially if it has no yearly fee.
New creditabout 10%
How many accounts you've applied for or opened lately.
What helps: Apply for new credit only when you need it. Checking your own report or score doesn't hurt your score.
Credit mixabout 10%
The kinds of credit you have, like credit cards and loans.
What helps: This counts the least. You don't need one of every kind, so don't borrow just to change your mix.
These are FICO's percents for most people. They can be different for each person, and other scores, like VantageScore, weigh things differently.
Check your credit card use
Enter the balance and credit limit for each card. Both are on your statement or in your card's app. This shows your Credit utilizationHow much of your credit card limits you're using right now, shown as a percent.More in the glossary.
Your results
- Credit used
- 43%
- Total balances
- $650
- Total limits
- $1,500
You're using 43% of your total limits. Experts advise 30% or less.
To get to 30% or less, pay down about $200 in total.
| Card | Credit used |
|---|---|
| Bank card | over 30%: 45% |
| Store card | over 30%: 40% |
What this means
- Credit use is part of "amounts owed," which counts for about 30% of a FICO Score. Experts advise using no more than 30% of your total limits.
- Each card's own use can matter too, not just the total. Paying down a card that's close to its limit can help.
- You don't need to carry a balance from month to month to build credit. Paying the full balance also means you pay no interest.
- Closing a card lowers your total limits. If your balances stay the same, you'd be using a bigger percent of what's left.
- Paying on time matters even more: payment history counts for about 35%.
You can see your credit reports for free at AnnualCreditReport.com. Checking your own report doesn't hurt your score. If something on it is wrong, you can dispute it for free. A nonprofit credit counselor can help you make a plan.
Where to get free help
- AnnualCreditReport.com
The official site for free credit reports from the three credit bureaus. Watch out for look-alike sites.
- Nonprofit credit counseling (NFCC)
A certified credit counselor can go over your budget and debts with you, for free or at low cost.