Credit Building
FAQ: Managing Your Credit Score
Quick, clear answers to the most common questions about credit scores and credit reports. For more detail, see our full guides on understanding and improving your credit.
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Want more depth? Read Understanding Your Credit Score and Tips for Improving Your Credit Score.
How is my credit score calculated?
Scoring models use information in your credit reports: payment history, amounts owed and utilization, length of credit history, new credit and credit mix. Payment history and utilization usually matter most.
Does checking my own credit score lower it?
No. Checking your own score or report is a soft inquiry and does not affect your score.
How often does my credit score change?
Scores can change whenever new information is reported, often monthly as lenders update balances and payment status.
Why are my scores different on different sites?
There are several scoring models (such as FICO and VantageScore) and many versions of each, and each bureau may hold slightly different information.
How long do late payments stay on my report?
Most negative information, including late payments, can remain for up to seven years. Its impact typically lessens over time.
What is a good credit utilization ratio?
Lower is better. Many experts suggest keeping it below 30% of your total limits, and those with top scores are often well below that.
Should I close credit cards I don't use?
Not always. Closing a card can raise utilization and, over time, shorten your credit history. Consider keeping no-fee cards open.
How do I get my free credit reports?
Visit AnnualCreditReport.com, the official site for free reports from Equifax, Experian and TransUnion.
Can I pay someone to fix my credit?
You can dispute errors yourself for free. Be wary of companies promising to remove accurate negative information; that isn't something they can legally guarantee.
Does paying off a loan improve my score?
It reduces your debt, which is good financially. Your score may not rise immediately, and may even dip slightly if it was your only installment account, but this usually stabilizes.