credit 2026-04-13
Credit Score Improvement
How credit scores are calculated and which actions move them most.
Your credit score determines mortgage rates, car loan terms, and more.
What Goes Into a Score
FICO weights:
- Payment history (35%)
- Credit utilization (30%)
- Length of credit history (15%)
- New credit (10%)
- Credit mix (10%)
Highest-Leverage Actions
1. Pay on time, every time
A 30-day late payment can drop your score 50-100 points and stays for 7 years.
2. Lower utilization
- Below 30% across all cards: decent
- Below 10%: excellent
3. Don't close old cards
Average age of accounts matters.
4. Limit new applications
Each hard inquiry drops the score 5-10 points temporarily.
Quick Wins
- Dispute errors on your credit report
- Become an authorized user on a parent's account
- Move credit card debt to a personal loan
What Doesn't Help
- Closing accounts to "clean up"
- Carrying a balance to "build credit"
- Paying for credit repair services
Score Tiers (US)
- 800+ Excellent
- 740-799 Very Good
- 670-739 Good
- 580-669 Fair
- Below 580 Poor