This is general information, not personal financial advice. Figures were checked against the sources below on November 4, 2026.
A credit score can affect whether you’re approved for a loan or credit card and the rate you’re offered. It can seem mysterious, but the main things that move it are well known, and most of them come down to a few habits.
Your credit report and your credit score are different
Your credit report is a record of your borrowing and repayment history, kept by credit bureaus. The three nationwide bureaus are Equifax, Experian and TransUnion. Your credit score is a number calculated from that information to estimate how likely you are to repay.
You don’t have just one score. Scoring companies use different models, and each bureau may hold slightly different information, so seeing different numbers is normal. FICO scores are widely used, so we use them as the example here.
What goes into a FICO score
myFICO breaks a score down into five categories. These are general weightings, and the exact effect depends on your own credit profile.
| Factor | Weight | What it looks at |
|---|---|---|
| Payment history | 35% | Whether you pay on time, plus how severe, recent and frequent any late payments are |
| Amounts owed | 30% | How much you owe and how much of your available credit you use |
| Length of credit history | 15% | The age of your oldest, newest and average accounts |
| New credit | 10% | How often you apply for or open accounts |
| Credit mix | 10% | The types of credit you have |
The habits that matter most
1. Pay on time, every time. Payment history carries the most weight. Set up automatic payments for at least the minimum, then pay more by hand when you can. If you’ve fallen behind, catching up matters, because the impact is greater when late payments are recent and frequent.
2. Use less of your available credit. Your credit utilization ratio is the share of your revolving credit limits that you’re using. If you owe $1,500 on cards with $5,000 of combined limits, your ratio is 30%. There’s no official target, but myFICO says a low ratio helps more than using none of your credit at all. Paying balances down, or paying before your statement date, can bring the ratio down.
3. Keep older accounts when it makes sense. Length of history counts for 15%. Closing an old card can also reduce your total available credit, which may raise your utilization. If a card has a high annual fee you can’t justify, though, closing it may still be the right call.
4. Apply for new credit only when you need it. Opening several accounts in a short time can suggest higher risk, and new accounts lower your average account age.
5. Don’t take on debt just to improve your mix. Credit mix is a small factor. It’s rarely worth paying interest on a loan you don’t need for the sake of your score.
Check your reports for free
The CFPB says you can get your credit reports free once a week at AnnualCreditReport.com. You can also call (877) 322-8228. Be careful with lookalike sites, and with “free” offers that require a card number or sign you up for a subscription.
Look through each report for:
- accounts you don’t recognize, which could be a sign of fraud
- payments wrongly marked as late
- incorrect balances or credit limits
- old negative information that should have dropped off
- names or addresses that aren’t yours
How to fix a mistake
The CFPB recommends disputing an error in writing with the credit bureau, including copies of supporting documents, and also contacting the company that supplied the information. Keep copies of everything you send. It doesn’t cost anything to dispute an error yourself.
How long negative information lasts
The CFPB says negative payment information can generally be reported for up to seven years. The FTC explains that bankruptcy information can stay for 10 years. Accurate information generally can’t be removed early, so be wary of any credit repair company that promises otherwise.
Common myths
- “You need to carry a balance to build credit.” You don’t have to pay interest to show that you use credit responsibly. Paying your statement in full avoids interest on most cards.
- “Checking my own score hurts it.” Checking your own report or score doesn’t count against you.
- “Paying off one debt fixes my score overnight.” Scores change as new information is reported, and history takes time to build.
A realistic timeline
Nobody can honestly promise a particular score by a particular date. Lowering a high card balance may show up relatively soon after it’s reported, while rebuilding after missed payments takes longer. Focus on the actions you control: pay on time, bring balances down, check your reports and dispute real errors.
If debt is the main thing holding your score back, our guide to the avalanche and snowball methods can help you choose a plan.
