How credit scores work, and how to raise yours.
Lenders use your credit score to decide whether to approve you and what rate to charge. Learn the two main scoring models, what each part of your history is worth, and what you can change and how fast.
- Two main models. FICO and VantageScore both run from 300 to 850 but band differently.
- You have many scores. Each bureau and model version can give a different number.
- Checking is free. Looking at your own reports and scores never lowers them.
Written by the Lendli Editorial Team under our editorial policy. Last reviewed .
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FICO vs. VantageScore ranges
Most lenders use a version of the FICO Score. VantageScore was created by the three credit bureaus and is common in free credit-monitoring apps. Both use a 300 to 850 scale, but the labels line up differently.
A 670 is "good" on FICO but "good" starts at 661 on VantageScore. So when an app shows your score, check which model it is using before you compare it with a lender's requirements.
Your score can also differ between Equifax, Experian and TransUnion, because lenders do not always report to all three.
What goes into a FICO Score
FICO groups the information in your credit report into five categories. Payment history and amounts owed make up about two thirds of the weight.
- Payment history: on-time vs. late payments, collections, bankruptcies
- Amounts owed: especially how much of your card limits you use
- Length of history: how long your accounts have been open, on average and at the extremes
- New credit: recent applications and newly opened accounts
- Credit mix: installment loans alongside revolving accounts
Source: myFICO. Weights describe the general population and vary by person.
Credit utilization, the fastest lever
Utilization is your card balances divided by your card limits. It is recalculated every time a statement reports, so it can change quickly.
| Balances | Total limits | Utilization | What it signals |
|---|---|---|---|
| $500 | $10,000 | 5% | Low use; generally strong |
| $2,500 | $10,000 | 25% | Moderate |
| $5,000 | $10,000 | 50% | High; can weigh on scores |
| $9,000 | $10,000 | 90% | Very high; often a big drag |
There is no official cutoff, but lower utilization generally scores better. Paying before the statement date lowers the balance that gets reported.
How long items stay on your credit report
Most negative information fades in impact over time, even before it falls off.
| Item | How long it can stay |
|---|---|
| Late payments | 7 years from the delinquency |
| Collections and charge-offs | 7 years from the original delinquency |
| Chapter 7 bankruptcy | 10 years |
| Chapter 13 bankruptcy | Up to 10 years; often reported for 7 |
| Hard inquiries | 2 years (FICO counts only the last 12 months) |
| Accounts in good standing | Can remain for years after closing |
A realistic timeline to improve your score
There is no instant fix, and anyone who promises one is a red flag. What works is steady, boring progress.
- Get free weekly reports from Equifax, Experian and TransUnion at AnnualCreditReport.com
- Dispute errors directly with the bureau showing them
- Set every account to autopay at least the minimum
- Keep old cards open if they have no annual fee
- Space out new credit applications
Credit score myths
A few beliefs that cost people points, or peace of mind.
"Checking my score hurts it"
Checking your own score or reports is a soft inquiry and has no effect.
"My income is in my score"
Scores do not include income or savings. Lenders ask for income separately.
"Closing old cards helps"
Closing a card removes its limit, which can raise utilization, and may shorten your history over time.
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