What Your Credit Score Affects
Your credit score determines your interest rates on mortgages, auto loans, credit cards, and personal loans. A 100-point difference can mean thousands of dollars in extra interest over the life of a mortgage.
The Biggest Credit Score Factors
Payment history (35%) is the single most important factor — even one 30-day late payment can drop your score significantly. Credit utilization (30%) is second — keeping balances below 30% of your limit, ideally below 10%, has the largest rapid impact on your score.
Frequently Asked Questions
A good FICO score is 670–739. Very good is 740–799. Exceptional is 800+. Most lenders offer their best rates to borrowers with scores of 740 or higher.
Small improvements can appear within 30–60 days by paying down balances. Significant improvements typically take 3–6 months of consistent on-time payments and low utilization.
No. Checking your own score is a "soft pull" that doesn't affect your score. Only "hard pulls" from lenders when you apply for credit can temporarily lower your score by a few points.