Your Credit Score
Your Credit Score Is Part of Your Financial Story
Your credit score can affect borrowing opportunities, rates and other financial decisions, but it is only one part of your overall financial picture.
Understanding the factors that may influence your score can help you make more informed decisions and develop healthier credit habits over time.
Focus on the Things You Can Control
If You're Working on Your Credit
- Make payments on time
- Keep balances manageable relative to available credit
- Avoid applying for unnecessary new credit
- Review your credit reports for accuracy
- Give positive credit habits time to build
Debt Consolidation
What About Debt Consolidation?
If you're carrying balances across multiple accounts, consolidating debt may simplify repayment. The effect on your credit score will depend on your individual credit profile and how the new loan and existing accounts are managed.
Score Factors
What Makes Up Your Credit Score?
- Payment History (35%) — The most important factor. Pay on time, every time — ideally before the due date.
- Amounts Owed (30%) — How much of your available credit you’re using. Keeping balances low is key.
- Length of Credit History (15%) — Older accounts help. Don’t close credit cards you’ve had for a long time.
- Types of Credit (10%) — A healthy mix of installment loans and revolving credit is better than all credit cards.
- New Credit (10%) — Opening several new accounts in a short period raises red flags for lenders.
Watch Out For
What Can Drop Your Score?
- Missed or late payments
- Maxing out credit card limits
- Closing long-standing credit card accounts
- Opening multiple new accounts in a short time
- Excessive credit inquiries
- Having more credit cards than installment loans
Build Your Score
How to Improve Your Score
- Pay on time — or early. Payment history is 35% of your score.
- Keep credit card balances low — aim to use less than 30% of your available limit.
- Don't close old accounts just to simplify. Age of credit matters.
- Don't open new accounts you don't need.
- Consider moving revolving credit card debt to a fixed personal loan — it improves your credit mix.
Check Your Credit
Where to Get Your Free Credit Report
You’re entitled to one free credit report per year from each of the three major bureaus: Equifax, Experian, and TransUnion. Request them at AnnualCreditReport.com or call 1-877-322-8228. Stagger your requests throughout the year to monitor your credit more frequently.
Note: Reported information typically stays on your credit report for at least seven years.
Need Help Building Credit?
Ask About Our Credit Builder Loan