Your credit score is a three-digit number that shapes your financial life—determining whether you get approved for loans, credit cards, and apartments, and what interest rates you'll pay. This calculator helps you estimate how different factors affect your score.
How This Calculator Works
This calculator estimates how actions affect your credit score:
- Current Score: Your estimated or actual FICO score
- Payment Behavior: On-time vs late payment impact
- Credit Utilization: Percentage of available credit used
- Credit History: Age of your accounts
- Credit Mix: Types of credit accounts
- Score Impact: Estimated effect of changes on your score
The Formula Explained
Credit scores are calculated using weighted factors:
- Payment History: 35% (most important)
- Credit Utilization: 30% (balances vs limits)
- Length of History: 15% (age of accounts)
- Credit Mix: 10% (variety of account types)
- New Credit: 10% (recent applications/inquiries)
The exact formula is proprietary, but behavior changes have predictable impacts.
Step-by-Step Example
Actions That Change Your Score
| Action | Typical Impact |
| Paying down card from 80% to 30% utilization | +20 to +50 points |
| One 30-day late payment | -60 to -110 points |
| Closing oldest credit card | -10 to -30 points |
| Opening a new credit card | -5 to -10 points (temporary) |
| Becoming an authorized user | +10 to +30 points |
Frequently Asked Questions
What is a credit score and how is it used?
A credit score is a numerical representation of your creditworthiness. Lenders use it to decide whether to approve you and what interest rate to charge. Landlords check it for rental applications. Insurers may use it for premium calculations. Higher scores mean better approval odds and lower rates.
What are the credit score ranges?
FICO Score ranges: Poor (300-579), Fair (580-669), Good (670-739), Very Good (740-799), Excellent (800-850). Scores above 740 typically qualify for the best rates. The average US score is around 715. Even "fair" scores can get approved, just at higher rates.
How is a credit score different from a credit report?
Your credit report is the detailed history of your accounts, payments, and inquiries. Your credit score is a single number calculated from that report. Check your free annual reports at AnnualCreditReport.com for accuracy. Dispute any errors—they can drag down your score.
What hurts my credit score most?
Late payments cause the most damage (35% of score). A single 30-day late payment can drop scores 60-110 points and stays on your report for 7 years. High utilization (30% of score) is the second biggest factor. Collections, bankruptcies, and foreclosures have devastating multi-year impacts.
How can I improve my credit score quickly?
Fast wins: (1) Pay down credit card balances—lower utilization boosts scores within 30 days, (2) Dispute errors on your report, (3) Become an authorized user on someone's old, well-maintained card, (4) Don't close old accounts—length of history matters. Payment history takes longer to improve.
How long do negative items stay on my credit report?
Late payments: 7 years from the date of delinquency. Collections/Charge-offs: 7 years. Bankruptcies: 7-10 years depending on type. Hard inquiries: 2 years. The impact diminishes over time—a 5-year-old late payment hurts less than a recent one.
Does checking my own credit hurt my score?
No—checking your own credit is a "soft inquiry" and doesn't affect your score. Only "hard inquiries" from lenders when you apply for credit cause a small temporary dip. Check your score regularly without worry. You're entitled to free annual reports from each bureau.
What credit score do I need for major purchases?
Mortgage: 620 minimum for conventional (740+ for best rates). Auto loan: 500+ can qualify (700+ for best rates). Credit cards: 580+ for basic cards (700+ for premium cards). Apartment rental: 620+ typically required by landlords. Higher scores mean lower costs across the board.
Key Points to Remember
- Payment history is king: Never miss payments—set up autopay
- Keep utilization low: Under 30%, ideally under 10%
- Don't close old cards: Length of history helps your score
- Check reports annually: Dispute any errors you find
- Time heals: Negative items matter less as they age