Make it easier to qualify for loans, credit card rewards and lower interest rates.
The leading credit score provider, FICO, makes its calculations based on these factors
35%
Payment
history
30%
Amount of available credit used
15%
Length of history
10%
Types of
credit
10%
New
credit
Credit scores range from
300
to
850
with an average of
711
300
850
711
Always pay at least the minimum due.
Missed or late payments can
increase interest rates
hurt your credit score
add fees
Automatic payments or reminders can help ensure you pay on time.
You’ll have a longer history and more available credit, both of which can help your score.
You can keep old cards active by using them for recurring purchases or subscriptions and setting up automatic payments.
Know your credit limit (it’s on your statement) and don’t let the amount you owe exceed 30% of it. Having more available credit can boost your score.
Credit limit
Available credit
Amount you owe
30%
Pay as much as you can—and at least the minimum—every month to increase your available credit.
Having different types of loans, rather than just multiple credit cards, can help your score.
Consider these pros and cons:
Your available credit will increase
The average age of your accounts will decrease
Applying for too many cards in a short time worries creditors
Avoid applying for new accounts for six months before seeking a major loan.
Make sure there are no inaccuracies in your credit report. Correcting them might raise your score.
7 reasons to check your credit report
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What’s a credit limit—and why it matters
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