A credit score is a three-digit number (typically 300–850) that represents your creditworthiness. Lenders, including credit card issuers, use it to decide whether to approve your application and what interest rate to offer.

The two main scoring models are FICO (used by 90% of lenders) and VantageScore. While they differ slightly in methodology, both evaluate similar factors.

• Payment History (35%) — Whether you pay on time. Even one 30-day late payment can drop your score 60–100 points.
• Credit Utilization (30%) — How much of your available credit you use. Keep it under 30%, ideally under 10%.
• Length of Credit History (15%) — How long your accounts have been open. Older is better.
• Credit Mix (10%) — Having different types of credit (cards, auto loans, mortgage) helps.
• New Credit (10%) — Each application creates a "hard inquiry" that temporarily lowers your score.

• 800–850: Exceptional — Best rates on everything. Approval is nearly guaranteed.
• 740–799: Very Good — Most premium cards are within reach.
• 670–739: Good — Most mainstream cards available. Rates may be higher.
• 580–669: Fair — Limited options. Consider secured or starter cards.
• 300–579: Poor — Secured cards and credit-builder loans are your best path forward.

1. Pay every bill on time. Set up autopay for at least the minimum.
2. Lower your utilization. Pay down balances or request credit limit increases.
3. Don't close old accounts. They help your average age of credit.
4. Limit applications. Each hard inquiry stays on your report for 2 years.
5. Check your reports for errors. Dispute anything inaccurate at annualcreditreport.com.