Credit Score FAQs

A credit score is a number calculated from your credit report using a scoring model, like FICO® or VantageScore®. Lenders use scores, typically ranging 300–850, to help decide if you’re a good risk. You have many scores, which may be different due to several factors. Knowing those factors and where your scores stand will help you assess your credit health overall.

Read more: How credit scores work.

Your credit score is important because it affects your ability to borrow money and the interest rates you’ll pay. A higher score can make loans and credit cards more affordable, while a lower score may limit your options and increase costs. Scores can also influence renting, insurance and even job opportunities. Be sure to monitor your credit regularly.

Read on: Why is credit important?

You can check your credit scores for free through Credit Karma, which offers your VantageScore® 3.0 scores from Equifax and TransUnion. Your scores may also be available through your bank or credit card, or directly from the three main credit bureaus. Scores vary by model (like FICO and VantageScore) and by bureau, so you may see different numbers. Checking your own score is a soft inquiry and won’t affect your credit.

Check your credit scores and learn more.

On Credit Karma, you can get your VantageScore 3.0 scores for free, which come directly from Equifax and TransUnion. Many banks and credit card issuers also offer free scores for account-holders. You have multiple credit scores, generated by multiple credit scoring models, like FICO and VantageScore, so you may see different numbers across different sources.

Read more about understanding your credit scores.

There’s no set age for credit scores. Instead, scoring models require enough information in your credit reports to provide a score, at any age. FICO generally needs an account at least six months old, while VantageScore may score you sooner. Being an authorized user could help build credit history, even before age 18, if it’s reported.

Keep reading about credit score criteria.

It’s a good idea to access your scores regularly — at least once a year. But you’ll want to check more frequently if you’re building credit, monitoring due to fraud, or anticipating a credit check by a lender or employer. Frequent checks help you track progress, catch errors early and spot signs of fraud. Checking your scores often is safe and won’t hurt your credit.

Read more on when to check your scores.

Scores are continually updating, because the information they’re based on is dynamic and reported to the bureaus at different times. Some information, like the age of your credit history, naturally changes over time, while other information, like an old credit inquiry or late payment, drops off your credit reports. Check your scores (and reports) frequently to understand your overall credit health.

Learn more about how often scores update.

You can view your business credit scores by checking with Dun & Bradstreet, Equifax and Experian. Dun & Bradstreet requires a subscription to see actual scores, while Equifax and Experian have both subscription and pay-per-report options. Each bureau uses different scoring models — so reviewing reports from all three could give you a fuller picture of your business credit profile.

Read more: Getting your business credit scores.

Credit scores are based on information in your credit reports and are influenced most by payment history. Also important is how much of your available credit you use (keeping utilization under 30% will help your scores). Length of credit history, having a mix of accounts and recent hard inquiries also matter. Pay on time and try to keep balances low.

Learn more about what goes into your credit scores.

Closing a credit card can lower your scores for a few reasons. Two of the biggest: It reduces your available credit (raising your credit utilization) and it can shorten your active credit history. If you’re worried about high fees or interest, one option could be to keep the account open but transfer your balance to a lower-interest credit card.

Read on: How closing a credit card can affect your credit.

Yes, high card balances can hurt your scores, because scoring models, like VantageScore and FICO, consider credit utilization. Credit utilization is the amount of credit you’re using vs. your limits. If you make a big purchase against your card’s limit, help protect your scores by paying down your balance as soon as you can to keep utilization below 30%.

Keep reading about how your balance impacts your scores.

Scores can drop when a lower balance causes changes to other factors — like credit mix or average age of accounts. A drop can also result from factors unrelated to the balance, like lower credit limit, another account’s rising balance, late payments or an account closure. Be sure to review your reports for errors and aim to keep utilization below 30%.

Learn more about the factors that can lead to a credit score drop.

A balance transfer can affect credit in good and bad ways. Scores may dip from the credit inquiry and because the new account lowers average account age. If you pay off but keep the old account, credit utilization could improve, boosting scores. And a transfer may make it easier to pay down debt, which is good for credit over time.

Read more: Balance transfers and your scores.

Use your credit cards regularly but lightly. Aim to keep overall and per-card credit utilization below 30% as much as possible, since lower usage helps your credit scores. Try making payments before your statement closes, or multiple times monthly, and spread spending across cards to avoid overusing any one card.

Keep reading: Credit card utilization and your scores.

Credit utilization, the amount of credit you’re using compared to your credit limit, significantly impacts your credit scores. It makes up 20% of your VantageScore 3.0 scores and 30% of your FICO scores. Lower utilization is generally better for your scores, so aim to keep utilization below the recommended 30% on your cards whenever possible.

More about credit utilization and your scores.

No, utility and phone bills don’t usually impact your scores, because generally those providers don’t report to the credit bureaus. But, unpaid accounts sent to collections will likely get reported and significantly hurt your scores. There are opt-in services that will let you submit utility and phone bills to the bureaus — though this can backfire if you miss a payment.

A hard inquiry typically occurs when a third-party company formally requests your credit file after you apply for credit. Hard inquiries can cause a small, temporary dip in your credit scores and usually stay on your credit reports for about two years. To reduce the impact, space out applications and confirm whether the check will be a hard or soft inquiry — soft inquiries don’t affect your scores.

Learn more about hard credit checks.

A soft credit inquiry, or soft credit check, is a review of your credit reports that doesn’t come from formally applying for credit. Examples include viewing your own report, prequalification offers and general account reviews by existing lenders. Soft inquiries don’t affect VantageScore or FICO credit scores. By contrast, hard inquiries typically follow credit applications and can negatively impact scores.

Keep reading about soft credit checks.

Your scores on Credit Karma might differ if other sources are using different scoring models, like FICO. Credit Karma provides your VantageScore 3.0 scores from two credit bureaus, Equifax and TransUnion. Other services may also be using different bureaus or update schedules. Check your scores often to monitor your credit health, track trends and understand key credit factors.

Learn more about why scores differ between sources.

Credit Karma uses VantageScore 3.0, which was developed jointly by the three major credit bureaus — Equifax, Experian and TransUnion. Your scores on Credit Karma come directly from Equifax and TransUnion, and can differ from scores generated by other models, like FICO. Review your credit reports from each bureau to get a better overall understanding of your credit.

Read more: VantageScore 3.0.

Equifax, Experian and TransUnion are the three major consumer credit bureaus. They collect and store your account and payment information to create credit reports, which is what scoring models use as the basis for credit scores. There are other consumer-reporting companies, but these three dominate the credit and lending space and serve the most lenders and consumers.

Learn more about the three major credit bureaus.

Your credit history is the record of how you’ve used and repaid credit over time. It covers the accounts you’ve opened or closed, balances and limits, on-time or late payments, and account age and status. A credit report is a snapshot of your history from a specific credit bureau. Check your reports regularly to maintain accuracy and dispute errors.

Learn more about what goes into credit history.

A credit report is a snapshot of your credit history, including accounts, payments, balances, credit limits and account ages. Equifax, Experian and TransUnion compile reports using information from your creditors. You can get each bureau’s report for free at annualcreditreport.com, or view Equifax and TransUnion reports free any time through Credit Karma. Check your reports regularly to catch errors.

Learn more about credit history and its role.

You can get a copy of your Equifax and TransUnion credit reports for free from Credit Karma. You can also visit annualcreditreport.com for free reports from all three credit bureaus. Checking your own reports has no impact on your credit scores, so you can check as often as you like.

Read more about credit reports.

Credit history is the information in your credit reports about how you’ve managed credit over time, while a credit score is a three-digit grade based on that history. Scoring-model companies like FICO and VantageScore have different ways of calculating scores, but payment history and utilization matter most for both. Check your reports for accuracy, pay on time and keep balances low.

Keep reading about how credit history affects your scores.

Payment history is usually the biggest factor in credit scoring and one of the most important aspects of your credit history. Regular and consistent on-time payments strengthen your credit history, while late payments weaken it. Negative information like missed payments, accounts in collections and many other derogatory marks can appear on credit reports for up to seven years.

Read more: Payment history and your credit.

There is no single “normal” score, but the high 600s to mid-700s are generally considered good on the common 300–850 scale. VantageScore 3.0 classifies 661 to 780 as good, while FICO typically views 670 to 739 as good. Other models use different ranges and definitions, but these are the most common.

Read about what makes a good credit score.

A good credit score generally falls in the high 600s to mid-700s, depending on the scoring model. For example, FICO typically defines “good” as starting around 670, while VantageScore considers good starting at 661. Keep in mind that lenders may also have their own take on what’s “good.”

Keep reading about what makes a good score.

A score of 850 is generally the highest you can get from the main FICO and VantageScore scoring models. You don’t need a perfect 850 to get great credit terms, though. Scores in the 700s often qualify for strong rates, and scores 760 or higher typically unlock the best offers.

Keep reading about how high a score can go.

To get as close to 850 as possible, prioritize key factors: Pay every bill on time, keep balances under 30% of card limits (lower is better), maintain active accounts, and apply for new credit only when needed. Check your credit reports often for errors and dispute inaccuracies.

Read more: Building higher scores.

Your credit scores could be low for a number of reasons, including late or missed payments, high credit utilization, multiple recent credit applications, and errors on your report. Over time, paying down debt and consistent, on-time payments can improve your scores. Make sure to review your credit reports regularly and dispute any inaccuracies.

Learn more about credit score drops.

A credit score of 600 or below could be considered “bad,” but it depends on the credit scoring model. For example, FICO considers scores less than 580 as poor, and VantageScore 3.0 (the score Credit Karma provides) considers scores 600 or less as poor. Late payments, high credit utilization, accounts in collections and bankruptcies can contribute to low credit scores.

Learn more about what the industry considers “bad” credit.

Credit scores often drop due to changes in your reports like a late payment or rising balances. But scoring models consider other factors that can cause a dip — like closing cards or paying off a loan, which affect your credit mix or utilization. Applying for new credit may also drop scores. Monitor your credit often to better understand score changes.

Read about what to do after your credit scores drop.

A “bad” credit score (generally 600 or lower) can make it harder to qualify for loans and credit, and can lead to less-favorable terms and higher interest rates when you do. But your score can improve. Paying on time, reducing balances and disputing errors on your report can help you build your credit over time.

Keep reading about the impact of “bad” credit scores.

You might say a credit report looks “bad” if it shows late or missed payments, accounts in collections or charged off, or other negative marks such as bankruptcy. A high number of hard credit inquiries can also hurt your credit scores. Rebuilding your on-time payment streak, paying down card balances, and disputing inaccuracies are key to restoring credit.

Keep learning about credit reports.

To build credit from scratch, start by opening an account that’ll be reported to the credit bureaus. Good options include secured credit cards, credit-builder loans, or becoming an authorized card user for a trusted family member with good credit. Make on-time payments, keep balances low, and use less than 30% of your available credit.

More tips on establishing credit.

Having a thin credit file means that you don’t have enough credit history for the credit bureaus to generate credit scores for you. Those new to building credit typically start out with thin credit files. Lenders may also consider your credit file thin if you have less than five open credit accounts or you haven’t used your credit recently enough.

Start by opening a credit card in your name or becoming an authorized user on a family member’s account. To get your own card, you might consider a secured card requiring a deposit, a student card (often higher interest), or applying with a co-signer. Paying your bills on time and keeping your credit utilization below 30% will help build your credit scores.

Learn more about building credit as a student.

You can build your scores by disputing errors on your credit reports, paying on time (autopay helps), and lowering credit utilization by paying down balances or getting higher credit limits. A secured card, credit-builder loan or becoming an authorized user can help when you’re starting out. Avoid closing older cards or opening many new accounts at once.

Read more tips on how to improve your scores.

Rebuilding your scores takes time, but you can start by regularly checking your credit reports to maintain accuracy and dispute errors. Make on-time payments, reduce your debt when possible, and lower your credit utilization to help boost your scores. Consider diversifying your types of credit, using bill autopay, and exploring secured cards or credit-builder loans to build positive credit history.

Learn more: building your credit scores.

To raise your credit scores with a credit card, make small, regular purchases and pay your balance on time and in full each month. If you carry a balance, keep your credit utilization under 30% (lower is better). Payment history and credit utilization are key factors in credit scoring.

Keep reading about using a credit card, and other tips, to raise your scores.

A secured credit card can help you build credit because it’s generally easier to qualify for and gives you a chance to build on-time payment history. You’ll put down a security deposit, which typically becomes your credit limit. Keep your balance low (under 30% of your limit) and consider a card that can be upgraded later to an unsecured card.

Read more about how to use a credit card to help build credit.

You can build credit without a card if you have other accounts that report to the credit bureaus. Lenders typically report loan payments to Equifax, Experian or TransUnion. Also look into getting rent or utility payments reported — or become an authorized user on someone’s card (choose someone you trust who has good credit). Pay on time and monitor your scores.

Learn more tips about building credit without a credit card.

There’s no single minimum score for credit card approval. Each issuer sets its own requirements, but higher scores generally give you more choices and better terms. If you have fair or poor credit, you might qualify for secured or starter cards, but you’ll likely face higher interest rates or lower credit limits.

Learn more about credit card approval.

It’s possible to get a loan without a credit score, but there can be drawbacks. Without credit history, you may need collateral or a co-signer, and loans may come with higher interest rates and fees. Some credit unions and lenders specialize in helping people new to credit. Explore your options to avoid high-fee loans if you can.

Explore no-credit loans.

Your credit scores are one factor lenders consider when deciding on approval and loan terms, including lending costs. Higher scores typically lead to lower rates and better terms, while lower scores can mean higher costs. Because lenders weigh other factors, like credit history and debt-to-income ratio, it’s helpful to understand your overall financial picture when considering a loan.

Keep reading about loans and your credit.

There’s no definitive credit score to rent an apartment — requirements vary by landlord. Many likely weigh other factors too. It’s a good idea to know your scores and overall financial picture. And if you want to improve your chances, consider offering an alternate payment history — like utility bill statements or other recent accounts — or paying more upfront.

Read more about your credit and renting an apartment.

Leases don’t require a specific score, but most people getting leases have credit scores above 660. Dealers also consider credit history and other factors, but lower scores could mean higher costs or stricter terms. Before applying for a lease, check your scores and overall credit — and consider options, like a larger down payment, to help get better terms.

Learn more about getting approved for a car lease.

Credit monitoring services can alert you to changes in your credit reports, like new accounts, inquiries or missed payments — giving you a chance to spot any errors or possible identity theft. Monitoring itself doesn’t improve your scores, but the alerts can help you catch inaccuracies so you can take action if needed.

Learn more about credit monitoring.

A fraud alert places a note on your credit reports indicating possible identity theft, prompting lenders to verify your identity before approving new credit. A credit freeze goes a step further and blocks access to your credit reports, which helps prevent new accounts being opened in your name. To initiate either, contact the three major credit bureaus.

Keep reading: Fraud alerts and your credit.

Yes, you can keep using any credit accounts you already have while your credit is frozen. A credit freeze doesn’t affect your existing cards or loans. It only restricts access to your credit reports, which can block criminals from opening new accounts in your name.

Keep reading about the pros and cons of freezing your credit