How credit scores work: FICO score ranges and what moves them

Quick answer: A FICO score runs from 300 to 850. 670–739 is "good", 740–799 "very good" and 800+ "exceptional". It's built from five things in your credit report: payment history (35%), amounts owed / utilization (30%), length of history (15%), new credit (10%) and credit mix (10%). The fastest ways to raise it: never miss a payment, keep card balances under 30% — ideally under 10% — of your limits, and dispute errors on your free reports at AnnualCreditReport.com.

Key takeaways

• The average US FICO score was 714 in 2026.
• One 30-day late payment can cost a good score dozens of points and stays on your report for 7 years.
• Utilization is the quickest lever — paying balances down can lift your score within one billing cycle.
• Checking your own score never hurts it. Hard inquiries from applications cost a few points for about a year.
• You can get free weekly reports from Equifax, Experian and TransUnion at AnnualCreditReport.com.

Your credit score affects the interest rate on a mortgage, car loan or credit card — and sometimes apartment applications, insurance prices and security deposits. Here's exactly how FICO scores work, what really moves them, and a practical plan to improve yours.

#FICO score ranges

Example: On a $400,000, 30-year mortgage, the difference between a rate of 6.5% and 7.25% — the kind of gap between a 760 and a 640 score — is about $200 a month, or roughly $72,000 over the life of the loan.

#The 5 factors in a FICO score

#Payment history: the big one

• Payments are reported late once they're 30 days past due. A payment that's a few days late usually only costs a late fee.
• Late payments stay on your report for 7 years, but their effect fades with time.
• Collections, charge-offs and bankruptcies hurt the most.

Tip: Set autopay for at least the minimum on every card and loan. You can still pay the full balance manually — autopay just makes sure you're never reported late.

#Credit utilization: the fastest lever

Utilization = card balances ÷ card limits, both overall and per card.

Example: You have two cards with limits of $5,000 and $10,000 ($15,000 total) and balances of $3,000 and $1,500. Your overall utilization is $4,500 ÷ $15,000 = 30%. Paying the balances down to $750 total drops it to 5% — and your score can rise as soon as the new balances are reported.

Tips:

• Under 30% is fine; under 10% is where the top scores sit.
• The balance reported is usually the one on your statement date. Pay before it to report a lower balance.
• Ask for a credit limit increase on a card you've had for a while (often a soft pull).
• Don't close old, no-fee cards — that reduces your total limit and raises utilization.

#Length of history, new credit and mix

• Average age of accounts grows slowly. Keep your oldest cards open and use them now and then so they're not closed for inactivity.
• Hard inquiries (from applications) cost a few points and count for 12 months (they stay on the report for 2 years).
• Rate shopping for a mortgage, auto or student loan within a short window (typically 14–45 days) counts as one inquiry.
• Credit mix matters least — don't take out a loan just to "improve your mix".

#FICO vs VantageScore

Your score in a free app may differ from the one a lender uses. Both respond to the same habits.

#How to check your score and reports for free

• Reports: AnnualCreditReport.com — free reports from all three bureaus, weekly.
• Scores: many credit card issuers and banks show a free FICO or VantageScore. myFICO offers a free FICO 8 score with some plans.
• Check all three reports — not every lender reports to every bureau.

#How to fix errors on your credit report

1. Get your reports from all three bureaus.
2. Look for: accounts that aren't yours, wrong late payments, wrong balances or limits, duplicate collections, and old debts past the 7-year limit.
3. Dispute online with the bureau that shows the error (Equifax, Experian or TransUnion). Include proof — statements, letters, payment confirmations.
4. The bureau generally has 30 days to investigate.
5. Also contact the lender (furnisher) directly.
6. If it isn't fixed, complain to the CFPB at consumerfinance.gov/complaint.

If you see accounts you didn't open, freeze your credit at all three bureaus (free) and report identity theft at IdentityTheft.gov.

#A 90-day plan to raise your score

Week 1

• Pull all three reports and dispute any errors.
• Set up autopay on every account.
• Bring any past-due accounts current.

Weeks 2–6

• Pay card balances down, starting with any card above 50% utilization.
• Pay before the statement date.
• Request a limit increase on your oldest card.

Weeks 6–12

• Don't apply for new credit unless needed.
• If you have little history, consider a secured card or becoming an authorized user on a family member's well-managed card.
• Check your score again — utilization changes often show within a month.

#What doesn't affect your FICO score

• Your income, job or savings
• Checking your own score or report
• Debit card use
• Your age, race, religion, marital status or where you live (by law)
• Rent and utilities — unless reported through a rent-reporting service or included by the lender's scoring version

Tip: Your score sets your mortgage rate and whether you pay PMI. See the full monthly cost in our mortgage calculator and how PMI works.

#Frequently asked questions

What is a good FICO score?

670 or higher is generally considered good. 740+ gets you near the best rates.

What is the average credit score in the US?

The average FICO score was 714 in 2026, according to FICO.

How long do late payments stay on my report?

Seven years from the date of the missed payment, though their effect shrinks over time.

Does checking my credit score lower it?

No. Checking your own score is a soft inquiry and has no effect.

How fast can I raise my credit score?

Lowering utilization can help within one or two billing cycles. Recovering from late payments takes longer — often a year or more of on-time payments.

Should I close credit cards I don't use?

Usually not, especially your oldest card or no-fee cards. Closing them can raise utilization and shorten your history.

Do I have one credit score?

No. You have many — different FICO versions and VantageScores from each of the three bureaus.

#Sources

• myFICO — What's in my FICO scores
• FICO — Fall 2026 Score Credit Insights: average FICO score 714
• CFPB — How do I get a free copy of my credit reports
• AnnualCreditReport.com — Free weekly credit reports
• FTC — Disputing errors on your credit reports