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). Consider a representative case: a credit score dropping 87 points — from 761 to 674 — after a single missed mortgage payment during a job transition. That one 30-day late payment can cost $4,200 in higher interest on a subsequent auto loan refinance, and recovering those points can take 18 months of perfect payments. This is why understanding your credit score isn't optional — it's financial self-defense. !FICO credit score factors breakdown showing payment history 35%, credit utilization 30%, credit...