Guides › Credit scores

How credit scores work

PintCredit has no affiliate partnerships yet, so nothing on this page earns us money. Card terms change often; confirm details on the issuer's site. How we make money

Your credit score is a number lenders use to guess how likely you are to pay back what you borrow. Card issuers use it to decide whether to approve you and what rate to offer. The good news: the rules are well known, and the biggest ones are in your control.

The five factors

FICO, the most widely used scoring model, publishes roughly how much each factor counts for the general population:

FactorWeightWhat it means
Payment history35%Whether you pay on time. Late payments hurt most.
Amounts owed30%How much of your available credit you're using (utilization).
Length of credit history15%How long your accounts have been open, on average and oldest.
New credit10%Recent applications and newly opened accounts.
Credit mix10%Having different kinds of credit, like cards and loans.

VantageScore, another common model, weighs things a little differently but rewards the same habits.

What moves your score

Late payments. Payments 30 or more days late can be reported and stay on your report for years. Autopay prevents this.

Utilization. Using a small share of your limits helps. A common guideline is under 30%, and lower is better.

Account age. Keeping older cards open (especially no-fee ones) helps your history length.

Hard inquiries. Each new application can cost a few points for a while. Checking your own score doesn't.

Utilization, explained

Utilization is your card balances divided by your total credit limits. With a $1,000 balance and $5,000 in total limits, you're at 20%. It's usually calculated from the balance on your statement, so paying down your card before the statement closes can lower it even if you always pay in full. Utilization has no memory in most scoring models: bring it down and your score can recover quickly.

Check your reports for free

In the US, you can get free credit reports from all three bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com, the official site. Many banks and card issuers also show a free score in their apps. Check for accounts you don't recognize and dispute errors with the bureau that reports them.

A simple plan to raise your score

  1. Turn on autopay for at least the minimum on every card and loan.
  2. Pay balances down and keep utilization low.
  3. Leave old no-fee cards open and use them occasionally so they stay active.
  4. Space out new applications.

Quick answers

What is a good credit score?

On the common 300–850 scale, scores in the 670s and up are generally considered good, and 740s and up very good to excellent, though each lender sets its own cutoffs.

Does checking my own credit score lower it?

No. Checking your own score or report is a soft inquiry and doesn't affect your score. Hard inquiries happen when a lender checks your credit after you apply.

How can I check my credit report for free?

In the US, AnnualCreditReport.com is the official site for free reports from Equifax, Experian, and TransUnion. Many banks and card apps also show a free score.

Run your own numbers

Is a card's annual fee worth it for you?

Plug in your actual spending and see what a card would really earn after its fee, compared with a simple no-fee card.

Open the fee calculator →