Your credit score is a three-digit number that tells lenders how risky you are to lend to. Scores range from 300 to 850.
How FICO Scores Are Calculated
FICO is the most widely used credit scoring model. Here is what determines your score:
35%
Payment History
Do you pay on time?
30%
Amounts Owed
Credit utilization ratio
15%
Length of Credit History
How long have you had credit?
10%
New Credit
Recent inquiries and accounts
10%
Credit Mix
Types of credit (cards, loans, etc.)
Score Ranges
What You Can Do
- Pay all bills on time, every time
- Keep credit card balances below 30% of your limit
- Don't close old credit cards
- Only apply for new credit when you need it
- Check your credit reports for errors