Credit Scores
Learn how credit scores are calculated, why they matter, and how to build excellent credit.
Calculate Your SavingsWhat is a Credit Score?
A credit score is a three-digit number (typically ranging from 300 to 850) that represents your creditworthiness—your likelihood of repaying borrowed money on time. Lenders use credit scores to decide whether to lend you money and what interest rate to charge.
The most commonly used credit scores are:
- FICO Score: Used by 90% of lenders; ranges from 300-850
- VantageScore: An alternative scoring model; also ranges from 300-850
What Affects Your Credit Score?
35% Payment History
Your track record of paying bills on time. This is the most important factor in your credit score.
30% Credit Utilization
The percentage of available credit you're using. Lower utilization (under 30%) is better.
15% Length of Credit History
How long you've had credit accounts. Longer histories typically result in higher scores.
10% Credit Mix
Having diverse types of credit (cards, loans, mortgage) shows you can manage different credit types.
10% New Credit Inquiries
Hard inquiries when applying for credit can temporarily lower your score. Space out applications.
How to Improve Your Credit Score
Pay Bills On Time
Set reminders or automatic payments to ensure you never miss a payment deadline.
Lower Credit Utilization
Pay down credit card balances to get below 30% of your available credit limit.
Dispute Errors
Check your credit report for inaccuracies and dispute any errors with the credit bureaus.
Diversify Your Credit
Having different types of credit accounts can positively impact your credit mix score.
Building Better Credit
A good credit score opens doors to better loans and lower interest rates. Start improving yours today.