Credit Score

Credit Score Basics: What Every U.S. Borrower Should Know

FinanceScoreAI Editorial Published 2026-05-20Updated 2026-06-286 min read

Understand what makes up your FICO score and how to improve it over time.

What is a credit score?

A credit score is a 3-digit number (typically 300–850) that summarizes your credit history. Lenders use it as one input when reviewing loan applications.

The 5 FICO factors

FICO scores are built from five categories.

  • Payment history (35%)
  • Amounts owed / utilization (30%)
  • Length of credit history (15%)
  • Credit mix (10%)
  • New credit (10%)

How to improve your score

Pay on time every month, keep credit card balances below 30% of your limit, and avoid opening several accounts in a short window. Time and consistency are the biggest levers.

FAQs

Ready to check your eligibility?

Free, secure, and independent. No credit impact at review.