80-point swing possible in 90 days
Credit score: how it's calculated and how to improve it fast
Your FICO credit score (300-850) is determined by five factors: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%). The fastest improvements come from paying down credit card balances below 30% utilization and making every payment on time for six months. Above 740 unlocks the best rates on mortgages, auto loans, and credit cards.
Level
Try calculatorKey takeaways
04 · ideas- Payment history (35%) and utilization (30%) control 65% of your score
- Paying down cards below 10% utilization can add 30–50 points in one cycle
- A 760 vs 680 score saves $30,000+ on a 30-year mortgage
- Hard inquiries matter less than most people think — only 10% of your score
Your credit score is a number between 300 and 850 that summarizes how reliably you've managed debt. Lenders use it to decide whether to approve a loan and at what interest rate.
Why it matters in real money:On a $300,000 30-year mortgage:
- Score 760+: rate ~7.0% → payment $1,996/month
- Score 700: rate ~7.5% → payment $2,098/month
- Score 650: rate ~8.2% → payment $2,248/month
The difference between a 760 and a 650 is $90,720 in total interest over the life of the loan — from the same $300,000 borrowed.
The five factors (FICO model):
| Factor | Weight | What it measures |
|---|---|---|
| Payment history | 35% | Did you pay on time? |
| Credit utilization | 30% | How much of your limit are you using? |
| Credit age | 15% | How long have your accounts been open? |
| Credit mix | 10% | Cards + loans + mortgage = better |
| New credit | 10% | Recent applications |