How credit scores work, in plain language

A credit score is a three-digit summary of how you have handled borrowing. Lenders use it to guess how likely you are to repay on time.

Key points

• Payment history carries the most weight. One late payment can matter for years, but its effect fades as on-time months pile up.
• How much of your available credit you use (utilization) comes next. Lower is better, and it updates every month.
• The age of your accounts, your mix of credit types and recent applications make up the rest.

What to do next

Scores differ between bureaus and scoring models, so it is normal to see different numbers in different places. Focus on the trend, not one number.