What a Credit Score Means

Most credit scores range from 300 to 850. Higher scores signal lower risk to lenders.

• 750 and above: Excellent
• 700–749: Good
• 650–699: Fair
• 600–649: Poor
• Below 600: Very poor

Borrowers with higher scores typically receive lower interest rates and better terms. Lower scores may still be approved, but often at higher costs.

What Hurts Your Credit Score

Your score reflects your financial habits. These actions can quickly reduce it:

• Late or missed payments
• High credit card balances relative to your limits
• Loan defaults or accounts sent to collections
• Too many hard inquiries in a short period

A single default can drop your score by hundreds of points, making future approvals harder.

Using Credit Cards Wisely

A major factor is credit utilization—how much of your available credit you’re using.

• Keep balances below 30% of your total available credit.
• Pay down balances quickly to improve your score.
• Responsible use can unlock lower rates and rewards; misuse can damage your score fast.

Responsible Credit Card Tips

• Avoid interest: Pay your statement balance in full each month.
• Spend within your means: Only charge what you could cover with cash.
• Keep capacity for emergencies: Don’t max out cards—leave room for unexpected expenses.

How to Get Your Credit Score

You have several options to check your credit score and report:

• Free services: Credit Karma, Credit Sesame, WalletHub, LendingTree
• Your bank or card issuer: Many display your score on statements or online
• Credit bureaus: Order detailed reports from Equifax, Experian, or TransUnion

Most providers include charts or explanations to help you understand what your number means.