Maximizing credit card rewards comes down to knowing where you spend the most money and getting cards that fit those habits. If you’re intentional about the cards you pair and the types of rewards you want to earn, then you’ll put yourself in a great position to get the most value possible from those rewards.

• Decide what kind of credit card rewards you want
• Pick cards that align with your spending
• Earn all your available sign-up bonuses
• Combine your credit cards with purpose
• Use credit card combos in the same rewards program
• Redeem your rewards for the best value
• What’s next? Finding the right credit cards
• FAQs about maximizing credit card rewards

Decide what kind of credit card rewards you want

You can’t maximize your rewards if you’re not earning the kind that suits your lifestyle and habits. For straightforward rewards, you may want to earn cash back. But for more flexibility and higher redemption rates, you may be better off with points or miles that can be redeemed towards travel.

Points and miles typically function similarly — as a currency for a specific rewards program. And just like real currency, the value of your points and miles can fluctuate.

Here’s a breakdown of the types of rewards you can earn from credit cards:

Cash back

Cash back is often the most accessible type of credit card reward, and the easiest to understand. With cash back cards, all you have to do is spend money in the qualifying cash back categories. You’ll then get a percentage of your purchase back, typically to redeem toward your credit card statement. You can sometimes also apply your cash back rewards to other redemptions like gift cards, travel bookings or select entertainment purchases.

Travel rewards points and miles

Travel rewards points and miles can be more than other types of rewards, but they hold the most potential of any rewards.

Many travel credit cards allow you to redeem points or miles for travel, entertainment, cash back and more. Some popular examples of these kinds of rewards include American Express Membership Rewards® and Chase Ultimate Rewards®.

These programs may also allow you to transfer your points to partner travel loyalty programs, and that flexibility is where the rewards really shine. For example, you might be able to transfer your points to a partner airline or hotel program at a 1:1 ratio.

Meanwhile, co-branded travel credit cards usually offer rewards with the associated airline or hotel brand. Those rewards usually can’t be transferred to other brands, but they make more sense if you stick with one airline or hotel when you travel.

Rewards points

Rewards points are similar to travel rewards points and may even be redeemable through a card issuer’s travel portal. In practice, though, these points can be used for a variety of redemptions — cash back, travel, gift cards, merchandise, etc. — at a steady rate. These rewards are best for people who might redeem in a variety of ways, but the overall value is similar to what you’ll see from cash back.

Pick cards that align with your spending

You won’t be able to maximize your credit card rewards if your card’s bonus categories don’t  match your spending habits. Look at your monthly expenses and identify the categories where you spend the most money, as well as categories where you spend the most consistently. That might include travel, restaurants (including delivery), gas and EV charging, or groceries.

Let’s say you spend a lot of money on travel bookings, but only make travel purchases a few times per year. At the same time, you spend a steady amount at gas stations each month. In that case, you might want to look for a card with a high rewards rate on gas station purchases along with a high rewards rate on your most common travel categories, like airfare or hotel stays. That way you’ll earn steady rewards from your gas purchases while also getting a meaningful boost when it’s time to spend on travel.

Earn all your available sign-up bonuses

One of the best ways to maximize your credit card rewards is to earn your card’s sign-up bonus, which will likely offer rewards much greater than what you’d earn from everyday rewards rates.

A sign-up bonus, also called a welcome bonus, usually requires you to spend a set amount of money in a certain timeframe after your card account opens. For example, a card may offer 60,000 bonus points if you spend $4,000 within the first three months after account opening.

If you think you might have a hard time hitting a spending threshold just through everyday spending, try to time your card application so any large upcoming purchases fit into the sign-up bonus window. That way, you’ll be able to earn the bonus without breaking your budget.

Combine your credit cards to cover multiple bonus categories

No credit card comes with the highest rewards rates in every available spending category. If you want to maximize rewards, you’ll need to combine cards thoughtfully to earn on all your spending, not just a few categories.

For example, let’s say you spend a lot at gas stations every month and already have a card with a great rewards rate on those purchases. But you’re also spending more on restaurants and delivery, and you don’t have a card that earns bonus rewards on that spending. To maximize rewards, you’ll want to get a card with bonus rewards for restaurant purchases, and ideally also with a higher base rate greater than 1% (or 1 point per $1) on all other purchases.

Use credit card combos in the same rewards program

Maximizing your rewards can happen faster and more easily if you earn them within the same program. While splitting your cards between rewards programs might not mean much if you’re only earning cash back, you should be able to earn more rewards overall if you’re earning travel rewards.

For instance, let’s say you have a powerful travel card in a program like Chase Ultimate Rewards®, but it only earns bonus reward multipliers on travel and restaurant purchases. If you combine it with other cards in the same program that earn bonus rewards on categories such as drug stores, gas and groceries, you’ll expand your earning potential. But if the program also allows you to combine rewards earned from multiple cards, you’ll be able to use the travel card to maximize both your value and redemption possibilities.

Redeem your rewards for the best value

Your rewards are only as valuable as the value you get when you redeem them. While the cash back you earn is usually straightforward — 1% of $1 is always one cent, for example — the value of your points and miles can fluctuate. 

If you keep your points and miles within your card’s rewards program, the value will depend on the specific redemption you choose. If you redeem for a flight or hotel stay, try to assess the value of that redemption relative to the price you’d pay in cash. If your rewards program allows you to transfer points to an airline or hotel partner program, only do so if you know you’ll get a value greater than what you’d earn through the issuer program.

Assessing these point values can be time-consuming and tricky, but the potential reward is great. A resource like Credit Karma’s estimated point values can help ensure you’re getting the most value for your points.

How often should you redeem your credit card rewards?

You should redeem your rewards as often as needed for you to feel like you’re getting the best value from them. For some people, that may mean waiting until a planned trip, and for others, that may mean redeeming their rewards monthly as they earn them. Just don’t wait forever to make a redemption. Remember, your credit card rewards are only hold hypothetical value until you use them.

If you let your cash back sit in your account for too long, for example, you might find that you’re actually losing out on purchasing power due to inflation and other factors. Similarly, letting your points or miles accumulate without using them can make your rewards vulnerable to devaluation by the issuer.

What’s next? Optimizing your credit card use

With the right strategy, the right credit cards and an understanding of your spending habits, you can maximize your rewards in a way that works for you. 

To help you get started, consider using Credit Karma’s Card Optimizer. Once you match and link your cards, this tool can track your spending and show you any opportunities you might’ve missed to earn additional rewards with another card. It can also let you know when certain card benefits are about to expire so you don’t miss out on any perks.

We recommend these cards from our partners.

CK Editors’ Tips††: The best credit cards for groceries offer high rewards rates for your regular spending at supermarkets.

What to consider when choosing a credit card for groceries

A great credit card for groceries offers strong rewards rates at supermarkets, but keep in mind that not everywhere you can buy groceries is guaranteed to be included. In most cases, superstores and wholesale clubs aren’t included in the “supermarket” category, so you’ll need to find another card for those purchases.

How we picked the best credit cards for groceries

The best cards for groceries offer great rewards rates at supermarkets, plus extra value for your spending. We looked at grocery rewards rates, other card perks and annual fees to help make our picks. Read more about our methodology for picking the best credit cards.

We recommend these cards from our partners.

CK Editors’ Tips††: The best credit cards for restaurants offer great rewards rates and dining credits, whether you’re eating out or ordering delivery.

What to consider when choosing a credit card for restaurants

A strong credit card for restaurants offers great rewards rates when you eat out or order in. It may come with no annual fee or an expensive one. In most cases, a card with a high annual fee will offer additional dining credits, usually at certain qualifying restaurants. To assess if it’s the right card for you, look at the fine print to see if it already matches your dining habits.

How we picked the best credit cards for restaurants

We looked at restaurant rewards rates, spending credits and annual fees to help make our picks. Read more about our methodology for picking the best credit cards.

We recommend these cards from our partners.

CK Editors’ Tips††: The best credit cards for airport lounges offer memberships and regular entry to help make your airport experience more comfortable.

What to consider when choosing a credit card for airport lounges

Many cards with complimentary airport lounge access come with high annual fees, but that shouldn’t always keep you from applying. Gaining entry to many airport lounges can be pricey, and these cards help you cover the cost. Plus, they likely come with other crucial travel perks to help you save money and experience luxury.

How we picked the best credit cards for airport lounges

The best cards for airport lounges offer memberships or regular access to some of the best lounges in airports around the world, plus other travel perks that give value for the annual fee. We looked at available airport lounge offerings, rewards rates, travel perks and other bonuses to help make our picks. Read more about our methodology for picking the best credit cards.

We recommend these cards from our partners.

CK Editors’ Tips††: The best instant access credit cards combine great rewards and perks with the ability to use the card instantly after approval.

What to consider when choosing an instant access credit card

The ability to use a credit card instantly probably shouldn’t fully determine whether you apply, but the feature can provide real value. Assess your options as you would any other card and balance the rewards and perks against a potential annual fee, but also consider how using the card instantly can help you. For instance, shifting your spending right away could make it easier to qualify for the card’s welcome bonus, if it offers one.

How we picked the best instant access credit cards

We looked at rewards rates, perks, annual fees and the details of each card’s instant access features to make our picks. Read more about our methodology for picking the best credit cards.

Building credit with a credit card starts by looking at your monthly expenses and deciding what kinds of small, consistent purchases you can make with the card. Then, as you make those purchases, keep an eye on your credit utilization and make sure you don’t get too close to maxing out your card. When you get your credit card bill at the end of the month, be sure to pay it on time and ideally in full.

Repeating these steps each month will help you build good credit habits and a positive credit history, leading to better credit scores over time.

If you don’t have a card yet, you also can consider becoming an authorized user on a trusted person’s account. You can benefit from the main user’s good credit history, which can potentially boost your scores even more.

1. Use your credit card for small, consistent purchases
2. Keep your credit utilization low
3. Pay your bills on time, every time
4. Become an authorized user on another person’s credit card account

• Which types of credit cards help build credit?
• How to build credit without a credit card
• Next steps: Track your credit-building progress
• FAQs about building credit with credit cards

1. Use your credit card for small, consistent purchases

The most straightforward way to build credit with a credit card is by making small, consistent purchases with a credit card. As you make these purchases and pay your bill on time, you’ll build a more substantial credit history, leading to better credit scores and the potential for credit limit increases.

By keeping your purchases small, you’ll use less of your available credit limit and likely have an easier time avoiding any overspending. If the purchases are consistent, you can more easily stay on budget.

We recommend looking at your monthly expenses and choosing which ones you’ll charge to your card. Consider regular, recurring purchases such as …

• Gas
• Groceries
• Streaming subscriptions
• Gym memberships

2. Keep your credit utilization low

Keeping your credit utilization rate (the percentage of your available credit you use) low helps improve your credit scores by showing lenders that you’re not overextended financially. It’s one of the most important credit factors in common credit-scoring models from FICO® and VantageScore®.

Credit card utilization compares your total credit balances to your credit limits across all of your cards. Experts generally recommend keeping your credit utilization below 30%. For example, if your credit cards have a total combined credit limit of $1,000, you should aim to keep your combined balances below $300.

Keeping your credit utilization rate under this threshold can be difficult when your credit limit is low. For example, if you only have a $200 limit, you’d have to keep your balance below $60 to stay under 30% utilization, which isn’t practical for many cardholders. That’s one reason trying to use your card only for smaller purchases is a good idea — you’ll probably have an easier time using less of your credit.

3. Pay your bills on time, every time

To build a positive payment history with credit bureaus, you must pay at least the minimum amount due on time, every single month.

The most important factor in your credit scores is typically your payment history. This factor makes up 40% of your VantageScore® 3.0 credit score (the score you see on Credit Karma) and 35% of your FICO® Score 8 credit score (FICO’s most popular scoring model).

It’s also important to remember that while paying the minimum keeps your account in good standing, paying your balance in full every month will allow you to avoid paying interest charges and carrying debt that will keep your credit utilization rate high.

Setting up automatic payments or calendar reminders can help you keep your payments on track.

4. Become an authorized user on another person’s credit card account

Becoming an authorized user on someone else’s credit card can help you build credit without having to apply for a card yourself. As an authorized user, you’ll have the credit activity and payment history of that account factored into your credit scores.

If you’re added to the account of a trusted person with good credit, then you can potentially benefit from their good habits and the account’s positive credit history. But if you’re added to the account of someone who’s struggling with their credit, then the opposite can happen and your credit can suffer.

Keep in mind that the authorized user typically receives their own credit card with their name on it, but they don’t actually control the main account.

Which types of credit cards help build credit?

If you’re looking for a credit card to help you build credit, it’s best to start with one geared toward that purpose. Not all credit cards are designed for beginners — many travel rewards cards, for example, are only available to people with good to excellent credit.

Here are some credit card types that are often more accessible for people building credit.

• Secured credit cards — Secured cards are designed for people new to credit or rebuilding credit. To apply, you send the issuer a refundable security deposit, which usually determines your credit limit. You’ll get the deposit back after a set amount of time or when you close the account, provided you don’t owe any money.
• Unsecured cards for building credit — Just like other traditional credit cards, unsecured cards designed for building credit don’t require a security deposit. But they might charge high annual fees and interest rates, and eligibility requirements might still be stricter than those of secured cards.
• Student credit cards — Many major card issuers offer rewards cards specifically for eligible college students. Unlike secured cards, student cards generally don’t require a security deposit. If you’re eligible, these cards are typically the best option available to students.
• Retail credit cards — Retail cards, also called store credit cards, tend to have less stringent approval requirements than standard credit cards. But these cards often come with high interest rates and low credit limits, and some can only be used at that specific store or family of stores. If you don’t shop very often with the retailer, this type of card is likely not worth getting.

Before you apply, make sure you keep credit requirements in mind. Look for issuers that label their cards with a credit score range to help people better understand their chances at approval, or those that allow prequalification for credit cards.

Credit Karma Approval Odds provide a window into credit card offers you’re more likely to be approved for. Approval Odds consider thousands of data points as well as insights from many credit-score versions.

Keep in mind that while Approval Odds use statistical analysis, the final approval decision rests with the credit card issuer after you submit a formal application.

How to build credit without a credit card

Using a credit card isn’t the only way to build credit. To work on your credit without one, you can …

• Open a credit-builder loan: With a credit-builder loan, the lender typically holds the loan amount in a  locked savings account rather than giving it to you immediately. You make monthly payments, which the lender reports to the bureaus. Once you’ve paid off the loan, the funds are released to you.
• Consider the Credit Karma Credit Builder plan: Similar to a credit-builder loan, Credit Karma’s Credit Builder plan can help people with low credit scores build a track record of on-time payments. This plan allows you to contribute to a locked savings account until you reach $500, when your money is then transferred back to you. Each contribution is reported as a line of credit payment to the three major credit bureaus — Equifax, Experian and TransUnion — which can help you build a positive payment history.
• Enroll in a credit-boosting account that reports bill payments: Some products, like Credit Karma’s Credit Spark™, help eligible users build credit by reporting on-time bill payments not typically reported to credit bureaus. For example, you may be able to build credit when the service reports your rent payments or utility payments to the credit bureaus. If you consistently pay these bills on time and in full each month, they can have a positive impact on your credit scores.
• Use your student loans: If you have student loans or another installment loan, you’ve already begun building credit. Be sure to read your contract carefully so you know when payments begin.

Next steps: Track your credit-building progress

Building credit is a marathon, not a sprint. To stay on the path to a strong credit history, you’ll need to keep practicing these foundational habits for improving your credit scores — like paying your bills on time and keeping your credit utilization low — in the long run.

As you practice these habits, track your credit-building progress by checking your scores and reports about once a month. Regularly monitoring your credit reports and scores helps you see what’s working and allows you to spot any potential errors that could bring your scores down.

You can check your credit reports and VantageScore® 3.0 credit scores from Equifax and TransUnion for free on Credit Karma.

A credit score of 600 or lower is generally considered to be a “bad” or “poor” credit score, but the exact range for bad credit scores depends on the scoring model.

You have many credit scores, each one backed by a unique scoring model. While some credit scoring models share the same credit score ranges, some of them categorize those ranges differently. Your lender may also have its own criteria for what they consider to be a bad score, regardless of what your scoring model says. 

Credit Karma provides free VantageScore® 3.0 credit scores, plus free credit reports, from TransUnion and Equifax. If you’re not sure whether your VantageScore® 3.0 score is considered “bad,” you can log into Credit Karma and check.

If your credit scores are low, you’ll likely have trouble qualifying for the best loans and credit cards. If you do qualify, the terms and rates may not be favorable. Let’s break down what a bad credit score really means and how to improve your scores if they’re low.

• What is considered a bad credit score?
• What factors affect your credit scores?
• What happens if you have a bad credit score?
• How to improve a bad credit score
• Next steps: Check your credit reports
• FAQs about bad credit scores

What is considered a bad credit score?

Your credit scores can be different depending on the credit reports and scoring model used to calculate them. So, what does a bad credit score look like for each model? Let’s take a look at a few popular examples.

What is a bad FICO credit score?

FICO base credit scores have a range of 300 to 850, while industry-specific FICO scores have a range of 250 to 900. If you have a base score below 580, you’re in the lowest FICO credit score range — called “poor.” Having a credit score in the poor range is often what people mean when they say “bad” credit score. Industry-specific FICO ranges are categorized similarly, but they may vary based on the exact scoring model being used. 

Being in this range means that your FICO credit score is well below the average score for U.S. consumers, according to FICO. 

Here are all five base FICO score ranges:

• Poor: 300 to 579
• Fair: 580 to 669
• Good: 670 to 739
• Very good: 739 to 799
• Excellent: 800 to 850

See where you can check your FICO scores for free.

What is a bad VantageScore credit score?

Like FICO scores, VantageScore uses a range of 300 to 850. Below are the VantageScore® 3.0 and 4.0 ranges.

• Poor: 300 to 600
• Fair: 601 to 660
• Good: 661 to 780
• Excellent: 781 to 850

What is a bad score for a mortgage?

Lenders don’t generally say what scores they consider bad, but certain loans do have guidelines in place for minimum qualifying scores. Here are the minimum credit score guidelines for a few common mortgage loans:

Just because there are minimum score guidelines in place, however, doesn’t mean a lender will approve an application with that low of a credit score. Your lender likely has its own guidelines in place that could be higher. 

What is a bad score for an auto loan?

There is no minimum credit score for securing a car loan. Each auto lender sets its own minimum credit score requirements.

However, higher credit scores mean you’re more likely to be approved and receive favorable terms. Experian’s State of the Automotive Finance Market report for the third quarter of 2025  shows that nearly 94% of all auto loans for new cars went to borrowers with a VantageScore 4.0 credit score above 600:

What factors affect your credit scores?

Your FICO and VantageScore credit scores are affected by similar credit score factors. Here’s a breakdown of what they are:

• Payment history: This is the most important factor to your credit scores. It tracks whether you consistently pay your bills on time. 
• Credit utilization: This looks at how much credit you’re currently using on revolving accounts like credit cards compared to your overall available credit and is included in FICO’s “amounts owed” category. A high credit utilization could lead lenders to think you’re overextended and might not be able to afford more debt. 
• Length of credit history: This factor measures the average age of all of your accounts, as well as the ages of your newest and oldest accounts. For VantageScore models, this is part of the “depth of credit” category. 
• Credit mix: This shows the different types of credit accounts you have, such as credit cards and auto loans. You don’t need one of each to successfully build credit, but lenders typically like to see that you can manage different types of accounts. This is also part of VantageScore’s “depth of credit” category.
• New credit: This section tracks how many credit accounts you’ve recently applied for or opened by looking at the hard inquiries on your account. Opening too many accounts in a short timeframe can hurt your scores. 

What happens if you have a bad credit score?

Having bad credit scores doesn’t mean you’re a bad person, but it can make certain aspects of your financial life harder. Here are some examples:

• You may not have access to the loans and cards you want. Many of the best products on the market are only available to people with good to excellent credit.
• You may be offered unfavorable terms by lenders. If you are offered a loan or credit card, you likely won’t be offered the best terms available. You may have to pay additional fees, for example, or have a higher interest rate than someone with strong credit. 
• Your insurance premiums might be higher. Home and car insurance providers can use credit scores to determine how high your premiums should be. If you have bad credit, you might have to pay more for insurance. 
• You might have a difficult time getting approved for a rental property. Some landlords may check your credit scores and reports before agreeing to rent you a property. Lower credit scores can cause a landlord to deny you or charge you additional upfront costs. 
• You might be turned down by a potential employer. While employers can’t check credit scores, they can sometimes check modified versions of credit reports, depending on state laws. The same negative information on a credit report that contributes to low scores is typically visible to potential employers, and they could decide whether this information affects their hiring decision. 

How to improve a bad credit score

The good news is that it’s never too late to improve your credit scores. You can start by following these steps:

1. Pay your bills on time, every time. Payment history is the most important factor in credit scoring, so ensuring you make timely payments each month is key.
2. Keep your credit utilization low. Paying down your balances lowers your credit utilization ratio, which is better for your credit scores. Experts typically recommend keeping your credit utilization ratio below 30% each month. 
3. Avoid taking on new debt or opening new accounts. If you’re struggling to manage your current debt, adding new accounts to the mix could make it harder for you to focus on building credit. If you are trying to rebuild your credit after closing old accounts or dealing with an event like bankruptcy, consider starting with a secured credit card or credit-building account. 

Next steps: Check your credit reports

With so many ways that your credit reports and scores can influence your life, it’s important to keep close tabs on both and take quick action when you notice any mistakes.

Credit Karma provides free credit reports and VantageScore® 3.0 credit scores from TransUnion and Equifax, two of the three major credit bureaus. By regularly checking your credit reports, you can make sure there are no errors dragging down your scores. If you do find any errors, you can dispute them.

Credit Karma also offers credit monitoring services and can alert you to changes in your credit reports, such as new hard inquiries. By keeping an eye on your scores and reports as you rebuild your credit, you’ll be able to track your progress.

Want to know more about your exact credit scores? Learn what your score means: 300   320   340   360   380   400   420   440   460   480   500   520   540   560   580   600   620

Key Takeaway: You can check your credit scores by using free services like Credit Karma and myFICO, as well as tools from banks, credit counselors and credit bureaus. You have many credit scores, and they can differ based on the credit scoring model, timing of the report or which credit bureaus your lender reports to.

These credit score tools typically provide access to certain credit scoring models, including FICO® Score 8 or VantageScore® 3.0. Many of these options are free, but not all. Some companies charge a fee for their services or will lock specific scoring models behind a paywall.

Credit Karma provides free VantageScore® 3.0 credit scores that you can check daily from TransUnion and Equifax. It also provides free credit monitoring that can alert you to changes on your credit reports.

• How do I check my credit scores?
• Which credit scores do lenders use?
• Why do I have different credit scores?
• What credit factors affect my credit scores?
• Next steps: Check your credit reports
• FAQs about checking credit scores

How do I check my credit scores?

Under the Fair Credit Reporting Act, U.S. consumers are entitled to receive one free credit report from each of the three major consumer credit bureaus every year. Thanks to a COVID-era program that has become permanent, however, the three main credit bureaus will provide you with a free copy of your credit reports weekly at annualcreditreport.com.

Keep in mind that those reports don’t include free credit scores. 

To get your scores, you must access them separately. Here are the main places where you can get your credit scores:

• Credit bureaus: You can get your scores from the three credit reporting agencies: Equifax, Experian and TransUnion, but you might be charged a fee for certain versions.
• Lenders: If you have a credit card or loan, your credit card company or lender may provide access to your credit scores on your monthly statement. Many banks and credit card companies also have credit score tools built into their apps or websites. Some credit card issuers allow you to check your scores even if you’re not a cardholder with them. For example, you can use the American Express® MyCredit Guide tool and CreditWise from Capital One for free.
• Credit score services: Many companies provide credit scores for free, but some charge a monthly fee. Some websites do a combination of both, providing certain scores for free but locking others behind fees. For example, myFICO provides your FICO® Score 8 for free but charges for scores from other FICO scoring models. Before you sign up, make sure to read the fine print.
• Certified counselors: If you’re working with a reputable credit counselor or HUD-approved housing counselor, they may offer you access to your credit scores.

Your credit scores help lenders assess your credit risk, so if you check them routinely, you’ll know where you may stand before applying for loans, credit cards or even housing.   

In some cases, you may need to provide personal information, such as your name, date of birth, address and Social Security number, to receive access to your scores. In other cases, the information may be readily available on your monthly loan or credit card statement or once you log into your online account.

How do I check my free credit scores with Credit Karma?

Credit Karma provides free VantageScore® 3.0 credit scores from two out of the three major credit bureaus, TransUnion and Equifax. You can check these scores daily by creating an account with Credit Karma. Once you’ve verified your identity, Credit Karma will use the information provided to retrieve your credit scores and credit reports. 

You can get your FICO scores for free using other services or tools. 

How do I check my business credit score?

Businesses have their own credit bureaus and credit scores separate from consumer ones. Dun & Bradstreet, Equifax Business and Experian Business are the major business credit bureaus, and they each have their own scoring models and credit factors.

Here’s an overview of how to check your business credit score with each of them:

• Dun & Bradstreet: Get a D-U-N-S Number for your business if you don’t have one already. Then, you can get a PAYDEX score through the company or through a provider like Nav.
• Equifax Business: Order your business credit report from the company and get access to your Credit Risk and Failure Risk scores.
• Experian Business: Order your business credit report from Experian, which will include your Experian Business credit scores.

Which credit scores do lenders use?

Companies use a variety of credit scores to make decisions, including whether to approve you for loan applications, insurance premiums (in certain states), rental requests and, in some states, employment applications. 

But they also may use their own proprietary models or consider other factors such as your income, employment history and debt-to-income ratio. 

Some common scoring models your lender may use include:

• FICO® Score 8, the most widely used version of FICO credit scores.
• FICO® Score 10, the first FICO suite with a version that tracks trended data (FICO® Score 10T). 
• FICO® Auto Score, an industry-specific score mainly used by auto lenders. 
• FICO® Bankcard Score, an industry-specific score mainly used by banks and credit card issuers.
• VantageScore® 3.0, a widely used credit scoring model created by the three credit bureaus.
• VantageScore® 4.0, another scoring model from VantageScore and the first score version to track trended data. The Federal Housing Finance Agency also began accepting VantageScore 4.0 for all mortgages sold to or guaranteed by Fannie Mae and Freddie Mac starting in late 2025.

Why do I have different credit scores?

You have multiple credit scores for several reasons. There are dozens of credit scoring models, and different models have different scoring criteria and formulas. 

Here are some other reasons your scores may be different:

• They use different credit reports: Not all lenders report to all credit bureaus, meaning your credit reports might not look exactly the same. Because your credit scores are generated using information from your credit reports, they can be different depending on what reports are used. 
• They use information reported on different dates: Your credit scores can change any time new information is reported, so your scores may be different depending on when they were pulled. Plus, lenders might not report to each credit bureau at the same time, so some credit reports may show information from older dates when you review your scores. 

What credit factors affect my credit scores?

Credit scores are calculated by weighing information taken from your credit reports. While every credit scoring model is calculated a little differently, they all generally look at the same five main credit factors:

• Payment history: Payment history is the single most important factor to your credit scores. It measures whether you consistently make on-time payments. 
• Credit utilization: This factor looks at the amount of credit you’re using compared to your total available credit. FICO considers this part of its “amounts owed” category. 
• Length of credit history: This factor measures the age of your oldest and newest accounts and the average age of all accounts. VantageScore includes this factor in its “depth of credit” category.
• Credit mix: This looks at the different types of credit accounts you have, such as credit cards, auto loans and personal loans. VantageScore includes this factor in its “depth of credit” category. 
• Recent credit activity: This includes any new credit applications you’ve submitted and any new credit accounts you’ve opened.  A flurry of recent credit applications may be an indicator of financial strain for some lenders. 

Here’s how FICO® Score 8 and VantageScore® 3.0, two widely used scoring models, weigh credit score factors:

Next steps: Check your credit reports

Because your credit scores are generated based on information included in your credit reports, it’s important to monitor your credit reports as well as your scores. 

You can start by getting free credit reports from TransUnion and Equifax through Credit Karma. By law, you’re also entitled to free credit reports from all three credit bureaus through the government-authorized website annualcreditreport.com. 

Review your reports carefully to ensure all the information is accurate. If you find information on your TransUnion or Equifax report that’s not correct, you can dispute the error to try and resolve the issue. 

If you want to raise your scores, take a look at these steps you can take to improve your credit.

The main way to check your Experian credit score is through an Experian account, but you can also do so through certain financial institutions or through a subscription with myFICO.

Your Experian credit score is a type of FICO score that’s based off information in your Experian credit report only. Equifax and TransUnion, the other two major credit bureaus, also provide credit scores based on their respective credit reports.

Credit Karma provides free VantageScore® 3.0 credit scores, along with free credit reports, from Equifax and TransUnion. Experian offers free FICO® Score 8 credit scores, along with a handful of other credit scores you can view with a paid membership.

Here’s a breakdown of what your Experian FICO score is, where exactly to find it and what factors go into calculating it.

• How can I check my Experian credit score?
• What is a good Experian FICO score?
• What factors make up my credit scores?
• How can I check my credit scores for free?
• What’s next? Improving your credit scores
• FAQs about Experian and credit scores

How can I check my Experian credit score?

You can check your FICO credit score from Experian if you …

• Create an Experian account: Experian shows your FICO® Score 8 for free in your account portal. If you want to see other Experian FICO scores — or scores from other credit bureaus — you’ll have to upgrade to a paid membership.
• Sign up for a myFICO subscription: You can get your Experian FICO® Score 8 credit score when you enroll in one of its paid membership tiers.
• Log into your bank or credit card issuer’s account: Some banks and credit card issuers provide credit scores for free through their mobile app or online account. Bank of America’s My Credit tool, for example, looks at your Experian credit report only and provides you with your FICO® Score 8 credit score.
• Sign up for a third-party service: Some third-party services show credit scores based on Experian credit reports. Many of these companies bundle these scores with identity theft services. Before signing up, be sure to read the fine print so you know you’re getting access to the credit scores you want and are getting value from the services offered.

What is a good Experian FICO score?

A good Experian FICO score falls between 670 and 739 on the FICO® Score 8 model that you see when you log into your Experian account. Above 739, your score would be categorized as either “very good” or “exceptional.” Here are the full ranges for each FICO® Score 8 scoring category.

• Poor: 300–579
• Fair: 580–669
• Good: 670–739
• Very Good: 740–799
• Exceptional: 800–850

A good Experian credit score doesn’t only come down to where your score falls on a FICO scale, however. Lenders have their own criteria when it comes to what qualifies as a “good” credit score, and it typically varies by lending product.

Plus, not every lender will base its decision off your Experian FICO score. Some might prefer to use a different scoring model like VantageScore® 3.0 or to pull the data from a different credit bureau like TransUnion or Equifax. To know for sure which scores and credit reports your lender uses, you’ll likely have to ask it before you apply.

What factors make up my credit scores?

There are five main factors that make up your credit scores, whether you’re looking at FICO scores from Experian or VantageScore scores from TransUnion. Here’s a brief breakdown of each factor.

• Payment history — A history of on-time payments is the most important factor for credit scores and gives lenders an indication of how likely you are to pay back a loan.
• Credit usage or credit utilization — Credit utilization is how much of your total credit you’re using compared to the amount you’ve borrowed. Lenders might view a higher credit utilization rate as a sign you have too much debt to pay back a new loan or credit card balance.
• Length of credit history — A longer credit history is generally better for your scores than a shorter one.
• Credit mix and types — Having a mix of different types of credit, such as a credit card and a car loan, can help show lenders you have experience with different types of loans. But it’s not a necessity — you can successfully build credit with just one type of credit.
• Recent credit — The number of hard inquiries on your credit reports can signal to lenders that you’ve been actively seeking credit and might be a riskier borrower.

How can I check my credit scores for free?

Beyond Experian, you can check your other credit scores through these similar methods.

• Other credit bureaus — TransUnion and Equifax both offer VantageScore® 3.0 credit scores when you sign up for the free tiers of their memberships.
• Banks and credit unions — Just like how some banks and credit unions provide credit scores based on your Experian reports, others provide scores based on reports from other credit bureaus. For example, U.S. Bank provides free VantageScore® 3.0 credit scores from TransUnion through its U.S. Bank Credit Score Program, while Citibank provides free FICO Bankcard® Score 8 credit scores from Equifax. You must be an eligible accountholder with these banks to use their respective tools.
• Third-party services — Credit Karma, for example, provides VantageScore® 3.0 credit scores from both TransUnion and Equifax for free.

What’s next? Improving your credit scores

Once you know where your credit scores stand, you’ll be able to better focus on improving them. Start by paying all of your bills on time every month — even if you can only afford the minimum payment — and trying to keep your credit card utilization below 30%.

To monitor your progress holistically, consider looking at more than just your Experian FICO scores. Credit Karma is not a credit bureau, but you can use it to get free VantageScore® 3.0 credit scores, as well as free credit reports, from TransUnion and Equifax.

Following these credit-building tips and staying on top of your credit scores and reports each month can help you raise all of your credit scores — including your Experian FICO scores.

Key takeaway: FICO® Score 9 shares many similarities to FICO® Score 8, but it treats aspects like medical debt, paid collections and rental history differently.

FICO® Score 9 is a commonly used credit score that looks at certain credit aspects — like medical debt, rent payments and paid collections — differently than FICO® Score 8.

FICO® Score 9 was officially launched to lenders in 2014 and has become another widely used credit scoring model alongside those like FICO® Score 8 and VantageScore 3.0. 

You can use Credit Karma to check your VantageScore® 3.0 credit score from TransUnion and Equifax, two of the three major credit bureaus, for free. 

While FICO® Score 9 is calculated similarly to FICO® Score 8, there are some key differences between them. For example, medical debt, paid collections and rental history are all treated differently under FICO® Score 9.

• How is FICO® Score 9 calculated?
• FICO® Score 8 vs. FICO® Score 9 
• Which credit score version do lenders use?
• Why are my credit scores different?
• What’s next?
• FAQs about FICO® Score 9

How is FICO® Score 9 calculated?

Like its predecessor FICO® Score 8 and its successor FICO® Score 10, FICO® Score 9 is a base FICO score that runs on a scale of 300 to 850. All base FICO scoring models take the same general scoring factors into consideration when calculating credit scores. 

Here’s a breakdown of those credit factors and their percentage of your total credit score calculation: 

• Payment history (35%): Payment history refers to your track record of paying your bills on time. It’s the most important factor of your FICO credit scores. 
• Amounts owed (30%): This category includes your credit utilization, which is the amount of revolving credit you’re using compared to your overall available credit limit. FICO® Score 8 is known to be sensitive to high credit utilization.
• Length of credit history (15%): This factor considers the ages of your oldest and newest accounts, along with the average age of all of your accounts. In general, the longer your credit history, the better it is for your scores. 
• Credit mix (10%): Your credit mix shows the different types of credit accounts you have, such as a credit card and an auto loan. It’s not necessary to have one of each type to successfully build credit, but lenders typically like to see you can handle different accounts. 
• New credit (10%): The new credit category accounts for any time you apply for or open a credit account. This is typically tracked in part by the hard inquiries placed on your credit report by lenders looking at your applications. Opening too many accounts in a short time period will typically have a negative effect on your FICO scores. 

FICO® Score 8 vs. FICO® Score 9

FICO® Score 8 and 9 are both base FICO scores with a lot of overlap. However, they differ when it comes to medical debt, paid collections and rental history. Here’s how:

• Medical debt: For FICO® Score 9, medical debt has less of a negative impact than other types of unpaid debt, especially if it has been sent to collections. FICO® Score 8 treats medical debt like any other unpaid debt. 
• Paid collections: Accounts sent to third-party collections that have been paid off are essentially ignored by the FICO® Score 9 scoring model, but they can still have a negative impact in the FICO® Score 8 model.
• Rental history: Rental history can be factored into your FICO® Score 9 credit scores if your landlord reports to at least one of the major credit bureaus. Rental history is not factored into your FICO® Score 8 credit scores. 

FICO® Score 9 compared to other credit scores

Here’s an overview of FICO® Score 9 compared to other widely used FICO and VantageScore scoring models in addition to FICO® Score 8:

Which credit score version do lenders use?

FICO® Score 8 is still FICO’s most widely used credit score, but many lenders also use FICO® Score 9. 

There are dozens of credit scores in circulation, and lenders get to decide which ones they use and why.  

Some types of credit scoring models work better for certain industries, like FICO® Auto Scores, which were designed for the car loan industry. Meanwhile, others may work better for scoring individuals with thin credit files. For example, VantageScore credit scores only need one month of credit history on one credit account to generate a score for someone.  

The only way to know for sure which credit score version your lender uses for a credit product application is to ask them.

Why are my credit scores different?

Your credit scores differ from each other for three main reasons:

1. Your credit scores have different scoring models: Each credit score type is generated by a unique mathematical formula called a scoring model. The slight differences between these models will mean that your scores look different, even if you’re just comparing a FICO® Score 8 to a FICO® Score 9. 
2. Lenders don’t always report to the same credit bureaus. Many lenders report to all three major credit bureaus, but some report to just one or two. Some don’t even report to any. This means some credit bureaus may be missing your information, resulting in different scores.
3. Lenders don’t always report your information to each bureau at the same time. Just because a lender reports your information to each credit bureau doesn’t mean it does so at the same time. Lenders typically report account information in monthly batches, but those batches can go out to each bureau at a different time. So, your credit scores may look different between bureaus if your reports haven’t all been updated yet.

How to find your FICO® Score 9 credit scores

Many banks, credit card issuers and third-party services provide free credit scores through their mobile apps or online accounts, but they typically show only FICO® Score 8 or VantageScore® 3.0. Some exceptions include:

• Wells Fargo, which provides free access to your FICO® Score 9 if you’re an eligible account holder. 
• First National Bank of Omaha, which provides eligible account holders with free access to FICO® Bankcard Score 9, an industry-specific model that’s based off FICO® Score 9 but tailored to credit cards. 

If you can’t get your FICO® Score 9 for free from your bank or credit card issuer, you can also purchase it directly from myFICO. 

What’s next?

The FICO® Score 9 credit score is just one of dozens of potential credit scores lenders may use to help them assess your credit profile. Those credit scores can also fluctuate often, sometimes even daily, depending on when your credit reports have been updated. 

That’s why it’s important to monitor both your credit scores and your credit reports, especially if you think you’ll be applying for new credit soon. 

Credit Karma provides free credit reports, as well as free VantageScore® 3.0 credit scores, from TransUnion and Equifax. By looking through your credit reports routinely, you can make sure your information is accurate. 

If you also sign up for credit monitoring services, then Credit Karma will alert you to unusual activity on your reports, such as new hard inquiries that could be a sign of identity theft. 

While it’s not the newest FICO scoring model, FICO® Score 8 is still the most widely used. It’s generally consistent with newer versions but differs in several key ways.

A FICO® credit score is a three-digit number ranging from 300 to 850 (or 250 to 900 for industry-specific scores). There are multiple versions of FICO® credit scores, and each is based on a unique formula calculated from information on your credit reports.

VantageScore® is another set of popular scoring models that uses information in your credit reports to generate scores. Scores from FICO and VantageScore can help lenders assess how likely you are to repay debt. Credit Karma provides free VantageScore® 3.0 credit scores from two of the three credit bureaus: TransUnion and Equifax.

Though FICO® Score 9 debuted in 2014 and FICO® Score 10 debuted in 2020, many lenders still rely on FICO® Score 8 when making decisions. That’s why it’s important to know what goes into the FICO® Score 8 credit scoring model. Here’s a breakdown of the factors behind FICO® Score 8, as well as the differences between it and newer versions.

• What factors affect your FICO® 8 credit score?
• FICO® Score types: How FICO Score 8 differs from other models
• Do lenders use FICO® Score 8?
• Next steps: Check your credit scores
• FAQs about FICO® Score types

What factors affect your FICO® 8 credit score?

FICO credit scores depend on the information in your credit reports, so knowing what’s in those reports is a good place to start. Your credit reports contain information such as how often you make payments on time and how many credit accounts you have open.

This information directly affects your FICO® Score 8 credit scores, as well as scores using many other credit scoring models. For example, keeping your credit utilization low can help your FICO® Score 8 credit scores, while repeatedly neglecting to pay your credit card bills on time can hurt them.

Here’s a breakdown of the credit score factors that make up your FICO scores:

• Payment history (35%): Your history of paying credit accounts is a major factor in determining your FICO scores. Lenders want to know whether you’ve paid your bills on time.
• Amounts owed (30%): This factor refers to how much you owe on credit accounts, such as installment loans and credit cards, and the percentage of your available credit that you’re using (known as your credit utilization rate).
• Length of credit history (15%): FICO scores take into account how long you’ve had your oldest and your newest accounts. Also considered are the average age of all your accounts and how long it’s been since you’ve used certain accounts. Generally speaking, the longer your credit history the better.
• Credit mix (10%): FICO scores consider your mix of different credit accounts, though it’s not a key factor. These may include credit cards, mortgage loans and auto loans.
• New credit (10%): New credit applications and recently opened accounts can influence your FICO scores. That’s because they trigger a hard credit inquiry, which shows other lenders that you’re looking for credit and can temporarily lower your scores by a few points.

Comparing FICO® Score 8 and VantageScore 3.0 credit score factors

Here’s how FICO® 8 and VantageScore® 3.0 — another widely used model — weigh these credit score factors:

FICO score types: How FICO® Score 8 differs from other models

FICO® Score 8 is just one credit-scoring model.

On Credit Karma, for example, you can get your free VantageScore® 3.0 credit scores from TransUnion and Equifax. These scores may not match up exactly with credit scores based on the FICO® Score 8 credit scoring model, but they rely on many similar factors. For example, your credit card utilization rate is considered a high-impact factor in both the VantageScore® 3.0 and FICO® Score 8 credit scoring models.

But there are still differences to consider, such as how other models treat:

• Paid collections: Newer FICO scoring models and VantageScore® 3.0 and 4.0 models ignore all paid collections accounts. FICO® Score 8 does not unless the collection is for less than $100. This means that paying off a debt in collection won’t have as much of an immediate impact on your FICO Score 8 credit score as it would other scores.
• Medical collections: FICO® Score 9, FICO® Score 10 and VantageScore® 4.0 de-emphasize the impact of unpaid medical collections accounts.
• Rental payments: FICO® Score 9 factors rental payment history into your scores — provided your landlord reports it to at least one of the three consumer credit bureaus.
• Trended data: VantageScore® 4.0 and FICO® Score 10T look at historical trends for factors like credit utilization as part of their credit score formulas, while FICO® Score 8 only looks at your most recently reported credit utilization information.

Here are some other key similarities and differences among the most popular VantageScore® and FICO® score models.

Do lenders use FICO® Score 8?

FICO® Score 8 credit scores are the most widely used FICO scores, and many lenders use them to assess credit applications. 

In addition to deciding whether you’re approved for a financial product, lenders may use your FICO® Score 8 to help them determine your:

• Credit limit
• Interest rate
• Repayment period

While companies like FICO and VantageScore create the formulas, however, it’s the lenders who ultimately select which model and version to use. That’s also why a credit card issuer or auto lender might stick with whichever credit score version it’s already using even if new models have come out. And credit scores aren’t the only thing lenders use to determine whether you can borrow money. Lenders may also look at factors such as your debt-to-income ratio, employment history and income. They also may use their own proprietary scoring models.

Where to find your FICO scores

If you want to check your FICO® Score 8 for free, you’ve got several options:

• myFICO: You can sign up for a free plan under myFICO and get your FICO Score 8 credit score.
• Experian: This credit bureau can provide you with your FICO® Score 8 for free if you sign up.
• American Express MyCredit Guide: American Express will provide your FICO® Score 8 credit score even if you’re not a cardholder.
• CreditWise from Capital One: Just like with American Express, you can get your FICO® Score 8 credit score from Capital One even if you’re not a cardholder.

Next steps: Check your credit scores

If you’re shopping for a new loan or credit card, consider reaching out to your potential lender and asking which credit scoring model may be used to evaluate your credit.

The more you know about what goes on behind the scenes, the better you can try to position yourself in the eyes of a prospective lender.

Credit Karma can provide your free VantageScore® 3.0 credit scores, as well as free credit reports, from TransUnion and Equifax. By checking your scores and reports routinely, you can stay on top of your credit-building progress and know where you stand before you apply for new credit.

If you spot any errors on your credit reports, make sure to dispute them with the credit bureaus.

Key takeaway: Your FICO® Auto Scores are specific credit scores tailored to the auto loan industry, but they’re not the only credit scores auto lenders use.

FICO® Auto Scores are industry-specific FICO scores tailored to lenders that issue car loans. Unlike FICO base scores that range from 300 to 850, FICO® Auto Scores range from 250 to 900.

You have many different FICO® Auto Scores, each based off a FICO base credit scoring model, like FICO® Score 8 or FICO® Score 9. Although FICO® Auto Scores use the same data as FICO base scores, the auto scores consider specific risk factors that focus on predicting how likely someone is to make auto loan payments as agreed. 

Instead of FICO® Auto Scores, Credit Karma show free VantageScore 3.0 credit scores from TransUnion and Equifax.

Let’s break down what goes into your FICO® Auto Scores, how you can check them and what you can do to improve your credit scores overall.

• What is a good FICO® Auto Score?
• How to check your FICO® Auto Scores
• How can I check my credit scores for free?
• Next steps: How do I improve my credit?
• FAQs about FICO® Auto Scores

What is a good FICO® Auto Score?

Even though FICO® Auto Scores have a different scale than the general base scores, they tend to categorize scores similarly. So, a score that falls into the “good” category on a base FICO score range will likely fall into the good category on the FICO® Auto Score range. 

For example, here are the category ranges for FICO® Score 8, the most widely used FICO credit score:

• Poor: 300-579
• Fair: 580-669
• Good: 670-739
• Very good: 740-799
• Exceptional: 800-850

Your FICO® Auto Score 8 is calculated similarly to FICO® Score 8, so its category ranges look like this: 

• Poor: 250-579
• Fair: 580-669
• Good: 670-739
• Very good: 740-799
• Exceptional: 800-900

Just like you have more than one base FICO score, you also have many FICO® Auto Scores. What’s considered “good” for a specific credit scoring model will depend on how its calculated. 

Lenders also have their own criteria for what’s considered a good credit score, so even if you have a good credit score on paper, you may not qualify for the auto loan you want. 

Auto loans are considered secured loans because they typically use the car itself as collateral for the loan. So, you may have an easier time qualifying even if your credit scores aren’t considered good. Still, read the fine print carefully: Many buyers end up with high interest rates, hidden fees and monthly payments they can’t afford once the promotional period ends.

How to check your FICO® Auto Scores

While some credit scores can be monitored for free, your FICO® Auto Scores usually aren’t among them. You can typically purchase access to your FICO® Auto Scores if you: 

• Sign up for a subscription through myFICO. When you pay for an Advanced or Premier tier through myFICO, you can monitor a handful of your credit reports and scores, including your FICO® Auto Scores. 
• Sign up for a Premium membership through Experian. Paying for the Premium membership tier allows you to view additional FICO scores, including FICO® Auto Score 2 and 8. 

Before you sign up for credit monitoring or buy your auto score, remember that there are many different FICO® Auto Scores. Monitoring just one doesn’t guarantee you’ll see the same version your lender checks, if your lender even pulls your auto scores at all. Consider calling your lender’s financing department to see which version they use before paying for your scores.

How can I check my credit scores for free?

If you want to see other scores aside from your FICO® Auto Score, you can start by checking with your bank or credit card issuer. Many of them offer free access to certain scores, such as FICO® Score 8 or VantageScore® 3.0.

Credit Karma provides free VantageScore® 3.0 credit scores, along with free credit reports, from TransUnion and Equifax. 

Next steps: How do I improve my credit?

Here are some of the best ways to improve your credit, regardless of which credit score you’re looking at:

• Pay your bills on time, every time. Payment history is the most important factor to your FICO and VantageScore credit scores. By building a positive payment history, you’ll be able to improve your credit scores. 
• Use only a portion of your available credit. Credit utilization refers to the amount of credit you’re using compared to your overall available credit. So, if you have a credit card with a $1,000 credit limit and you use only $200 of that limit, your utilization rate is 20%. If this ratio is too high, lenders may think you’re overextended, which can hurt your scores. By keeping credit utilization low — ideally below 30% — you may see better credit scores. 
• Avoid unnecessary applications for new credit. Opening new credit accounts will typically come with hard credit inquiries, which will temporarily lower your score. 
• Look for errors in your credit reports. If your credit reports incorrectly show something negative, like an auto loan payment you made that was reported as missed, you can dispute the error.

If you’ve missed auto loan payments in the past, that information typically stays on your credit reports for seven years, although its impact lessens with time. If you have unpaid auto collections, paying them off now may help you improve your scores and appear more favorable to lenders.