credit-report

Credit Score FAQ: How Scores Work, What Affects Them, and How to Improve

Your credit score is a three-digit number (300-850) that represents your creditworthiness, calculated from five factors: payment history (35%), credit utilization (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). A score of 740+ qualifies you for the best loan rates and credit card offers, potentially saving you tens of thousands in interest over your lifetime. Check your estimated score with our Credit Score Calculator(/finance/credit-score-calculator). In 2018, my credit score dropped 87 points — from 761 to 674 — after I missed a single mortgage payment during a job transition. That one 30-day late payment cost me $4,200 in higher interest when I refinanced my auto loan six months later. It took 18 months of perfect payments to recover those points. The experience taught me that understanding your credit score isn't optional — it's financial self-defense. !FICO credit score factors breakdown showing payment history 35%,...