What is a good credit score?

Credit scores (like FICO) typically range from 300 to 850. A score of 700 or above is generally considered good, 740-799 is very good, and 800+ is exceptional. A good score will qualify you for the best interest rates on loans.

How can I check my credit score for free?

Many credit card companies and banks now offer free access to your credit score as a customer benefit. You are also entitled to a free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year through AnnualCreditReport.com.

How long does it take to improve a credit score?

It depends on what's hurting your score. If you pay down a high credit card balance, you could see an improvement in a month or two. Negative marks, like a late payment or a collection, can stay on your report for up to seven years, but their impact lessens over time.

Does checking my own credit score hurt it?

No. When you check your own score, it's considered a 'soft inquiry' and has no impact. A 'hard inquiry,' which occurs when you apply for a new loan or credit card, can temporarily lower your score by a few points.

Financial Planning

Understanding Your Credit Score: The 5 Key Factors

Your credit score is crucial for getting a good loan. This guide breaks down the five factors that determine your score, from payment history to credit utilization.

Your credit score is one of the most important numbers in your financial life. This three-digit number is a snapshot of your creditworthiness, and it plays a huge role in determining whether you can get a loan, a mortgage, or even a credit card—and at what interest rate. Understanding what makes up your credit score is the first step to building and protecting it.

The 5 Factors That Make Up Your Credit Score

Payment History (35%)

The single most important factor. Paying your bills on time, every time, has the biggest positive impact on your score.

Amounts Owed / Credit Utilization (30%)

This is the ratio of your credit card balances to your credit limits. Keeping this ratio low (ideally below 30%) shows you're not over-reliant on credit.

Length of Credit History (15%)

A longer credit history generally leads to a higher score. This is why it's a good idea not to close your oldest credit card accounts.

Credit Mix (10%)

Lenders like to see that you can responsibly manage different types of credit, such as credit cards, a mortgage, and an auto loan.

New Credit (10%)

Opening several new credit accounts in a short period can temporarily lower your score, as it can signal financial distress.

Why Your Credit Score Matters

A good credit score can save you thousands of dollars over your lifetime. It gives you access to lower interest rates on major purchases like a home or a car, which directly impacts your monthly payments and the total interest you'll pay. A better score means you're seen as a lower risk, which translates to better financial products and opportunities. You can see the impact of interest rates with our Loan Payoff Calculator.