What Is a Credit Score & What Affects It?
What is a credit score and what affects it? Learn the key factors behind your score and how report errors may be suppressing it.
Key takeaways
- 1 in 5 consumers have identified errors on their credit reports, errors that may be suppressing scores and affecting financial outcomes (FTC, 2021).
- A credit score is a three-digit number ranging from 300 to 850 (FICO) that lenders use to evaluate credit risk and determine loan terms.
- Payment history (35%) and credit utilization (30%) are the two most heavily weighted factors in most scoring models.
- Credit Saint reviews your reports across all three bureaus and, with your authorization, may challenge inaccurate entries that could be affecting your score.
Ever wondered what that three-digit number on your credit report really means?
Understanding what a credit score is, and what affects it, is the first step toward stronger financial footing.
A credit score is a three-digit number that summarizes your creditworthiness based on the information in your credit report. Lenders use it to assess the risk of extending credit, a higher score typically signals lower risk, which may translate to better loan terms, lower interest rates, and broader access to financial products. Understanding what a credit score is and what affects it gives consumers a clearer picture of where they stand and what may be worth addressing.
One factor that often goes unexamined: whether a credit report contains errors that may be suppressing the score. According to the FTC (2021), 1 in 5 consumers have identified errors on their credit reports. Credit Saint reviews reports across all three bureaus. Equifax, Experian, and TransUnion, and, with your authorization, may challenge inaccurate or unverifiable entries. We’ve guarded the credit of 250,000+ Americans since 2004. We’ve got this.
Credit scores influence a wide range of financial outcomes, including:
- Loan approvals, mortgages, auto loans, personal loans
- Interest rates offered on credit products
- Credit card applications
- Rental applications
- Insurance premium determinations
- Utility service deposits
Because credit scores affect so many financial decisions, understanding what drives them, and whether a report is accurately reflecting the consumer’s history, matters more than many people realize.
What Affects a Credit Score?
Credit scores are calculated from several categories of information, each weighted by its relative importance to the scoring model. Here is how the FICO Score breaks down:
1. Payment History (35%)
Payment history is the single most heavily weighted factor. It reflects whether accounts have been paid on time. Late payments, collections, bankruptcies, and foreclosures can significantly affect a score. A consistent record of on-time payments, by contrast, builds a strong positive foundation over time.
2. Credit Utilization (30%)
Credit utilization measures how much of available credit is currently in use. It is expressed as a ratio, for example, a $3,000 balance on a $10,000 limit represents 30% utilization. Lower utilization ratios are generally associated with stronger scores. High utilization may signal over-reliance on credit to lenders reviewing the report.
3. Length of Credit History (15%)
The longer credit accounts have been open and active, the more data the scoring model has to work with. A longer history of responsible credit management tends to support a stronger score. Closing older accounts, even unused ones, can reduce average account age and may affect the score.
4. Credit Mix (10%)
Scoring models consider the variety of credit types on a report. A mix of revolving accounts (such as credit cards) and installment accounts (such as mortgages or auto loans) may reflect more experience managing different forms of credit.
5. New Credit (10%)
Each formal credit application typically generates a hard inquiry on the credit report, which may cause a small, temporary score reduction. Opening several new accounts in a short period can be viewed as a signal of elevated borrowing risk by some scoring models.
How to Check Your Credit Score and Report
Consumers are entitled to a free copy of their credit report from each of the three major bureaus. Equifax, Experian, and TransUnion, on a regular basis through AnnualCreditReport.com. Many credit card issuers and financial institutions also provide free score monitoring tools.
When reviewing a credit report, it is worth looking for:
- Accuracy: All accounts, balances, and personal information reflect the consumer’s actual history.
- Negative entries: Late payments, collections, or public records that may be affecting the score.
- Potential errors: Entries that appear inaccurate, unverifiable, or that don’t belong to the consumer, these may be eligible for challenge under the Fair Credit Reporting Act (FCRA).
The Consumer Financial Protection Bureau (CFPB) provides guidance on reading credit reports and understanding consumer rights under the FCRA.
Want a specialist to handle this for you?
We write and send the challenges, follow up with creditors, and track every bureau response. Plans from $79.99 a month with a 90-day money-back guarantee.
How Credit Saint Supports Credit Report Accuracy
Credit Saint is BBB accredited, holds a 4.8-star Google rating from 16,000+ reviews, and has been ranked #1 by ConsumerAffairs and The Credit Review, with top picks from Money.com and CNBC Select. We’ve guarded the credit of 250,000+ Americans since 2004. Over 96.4% of clients see results in the first 90 days, based on paying Credit Saint clients from May 2025 who had one or more items removed. Individual results vary.
Our specialists review your reports across Equifax, Experian, and TransUnion. We identify entries that may be inaccurate, unverifiable, or incorrectly reported and, with your authorization, prepare and submit disputes, communicate with credit bureaus, and pursue follow-up challenges as appropriate. You review the findings. You authorize each challenge. We handle every step from there.
Frequently asked questions
What is considered a good credit score?
Under the FICO model, a score between 670 and 739 is generally considered good, 740 to 799 is very good, and 800 to 850 is excellent. Scores below 670 may make it harder to qualify for favorable credit terms, though lender thresholds vary by product and institution.
How long does negative information stay on a credit report?
Most negative items, including late payments and collections, may remain on a credit report for up to seven years. Certain bankruptcies may remain for up to ten years. The impact of older negative entries on a score typically diminishes over time, particularly when more recent account history is positive.
Does checking my own credit score affect it?
No, checking your own credit score or report is considered a soft inquiry and does not affect the score. Hard inquiries, which occur when a lender reviews a report as part of a formal credit application, may cause a small, temporary score reduction.
Can inaccurate entries on a credit report affect the score?
Yes, inaccurate, incomplete, or unverifiable entries may suppress a credit score below where it would otherwise be. Under the FCRA, consumers have the right to dispute such entries with the credit bureaus. Credit Saint reviews reports across all three bureaus and, with client authorization, may challenge entries that don’t accurately reflect the client’s credit history. Over 96.4% of clients see results in the first 90 days, based on paying Credit Saint clients from May 2025 who had one or more items removed. Individual results vary.
This article is for educational purposes and isn't legal advice. Credit Saint is a credit repair organization. Results vary, and no credit repair company can promise a specific outcome or score change.
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