Credit Foundations

A FICO score runs from 300 to 850. It is not a measure of income or wealth — it is a measure of repayment behavior.

• Payment history — 35%. Pay on time, every time.
• Amounts owed (utilization) — 30%. Keep balances under 30% of your limit.
• Length of history — 15%. Keep your oldest card open.
• New credit — 10%. Space out applications.
• Credit mix — 10%. Handles itself over time.

If your card limit is $1,000 and your statement closes with a $400 balance, your utilization is 40% — high enough to cost you points even if you pay in full. Pay a chunk down before the statement closes, not just before the due date.

With no history, lenders have nothing to price. Two low-risk entry points fix that.

• A secured card: you deposit $200, that becomes your limit, and it reports like a normal card.
• Becoming an authorized user on a family member's long-standing card.

You are entitled to free weekly reports from all three bureaus at AnnualCreditReport.com. Read them for accounts you don't recognize and late marks that aren't yours — errors are common and disputable in writing.

Common questions