Your Credit Score.

What actually makes your score

Your FICO score runs from 300 to 850 — higher is better. It's built from five things, and they don't count equally. Knowing the weights tells you where to spend your energy:

• Payment history — 35%. Do you pay on time? This is the biggest piece by far.
• Amounts owed (utilization) — 30%. How much of your available credit you're using.
• Length of credit history — 15%. How long your accounts have been open.
• New credit / inquiries — 10%. How often you apply for new credit.
• Credit mix — 10%. A blend of cards and loans vs. just one type.

So two things — paying on time and keeping balances low — control 65% of your score. Fix those and everything else is details.

Pull your reports — free, and it doesn't hurt your score

You can't fix what you can't see. Get your reports from all three bureaus — Equifax, Experian, and TransUnion — at the one official, federally authorized site: AnnualCreditReport.com. It's free, you can now check weekly, and checking your own credit is a "soft pull" that never lowers your score.

Dispute errors — the fastest way up

Roughly 1 in 4 reports has a mistake — a payment marked late that you paid, an account that isn't yours, a debt listed twice, or a collection that's too old to be there. Removing an error often raises your score faster than anything else, because you're deleting damage you didn't earn.

• Flag every error — wrong personal info, accounts you don't recognize, wrong balances, late marks you can prove were on time.
• Dispute with the bureau that's showing it. Mailing your dispute by certified mail with copies of your evidence creates a paper trail and often gets a more thorough review than the online form.
• They have ~30 days to investigate and must remove anything they can't verify.
• If a bureau won't fix a clear error, file a complaint with the CFPB (consumerfinance.gov, or 855-411-2372) — it adds pressure and builds your paper trail.

The two biggest levers

Since on-time payments and low balances are 65% of your score, this is where the real gains live:

• Never be 30 days late. A single payment 30+ days late can drop your score up to 100 points and stick around. Set up autopay for at least the minimum on everything so a busy week never costs you. If you do slip, pay it current immediately and ask the lender (politely) to not report it — if you're usually on time, they sometimes say yes.
• Keep utilization low. Aim to use under 30% of each card's limit — and under 10% if you want a strong score. Here's the trick most people miss: your balance is reported on the card's statement closing date, not the due date. Pay it down a few days before the statement closes and the bureaus see a low balance — that alone can jump your score.

Building from thin or damaged credit

No credit, or rebuilding after a rough patch? You add positive history with tools built for exactly this:

• Secured credit card — you put down a deposit that becomes your limit, use it for one small recurring bill, and pay it off every month. It reports like a regular card and builds history.
• Credit-builder loan — a small loan where the payments build your record and you get the money at the end.
• Become an authorized user on the card of someone with good habits — their on-time history can help yours.
• Keep your oldest cards open. Closing an old card shortens your history and raises your utilization. Put one tiny recurring charge on it and autopay it instead.

Handling debt in collections

If a debt's gone to collections, don't panic-pay it. Two moves first:

• Make them validate it. Request debt validation in writing — collectors must prove the debt is yours and accurate. Paying an unvalidated or out-of-date debt can restart the clock on how long it haunts your report.
• Negotiate in writing. Collectors often settle for 30–70%. Ask for "pay for delete" — removal of the mark in exchange for payment — and get it in writing before you pay a cent. Note: newer scoring models ignore paid collections, but the older FICO many lenders still use does not, so deletion is worth pushing for.

How long bad marks last

• Late payments, collections, charge-offs: about 7 years, though the sting fades over time as they age.
• Chapter 7 bankruptcy: up to 10 years.
• Hard inquiries: about 2 years, minor impact. Rate-shopping a mortgage or car loan inside a 14–45 day window counts as a single inquiry, so shopping around won't punish you.

And remember: your income doesn't affect your score at all — only how you handle credit does.

Avoid the credit-repair scams

Here's the truth the "credit repair" ads won't tell you: anything they can do, you can do yourself for free. They use the same disputes and the same legal rights you already have — then charge $50–$100 a month for it. Walk away from anyone who:

• Asks you to pay upfront before doing anything (that's illegal under federal law).
• Tells you to dispute information you know is accurate, or to lie on a credit application.
• Pushes a "new credit identity" or CPN (a fake number to replace your SSN) — that's fraud, and it can land you in serious trouble.

If you want real help, a nonprofit credit counseling agency will review your whole situation and build a plan — without big upfront fees or empty promises.

Why this matters beyond you: if you run a business, your personal credit still feeds the FICO SBSS score lenders use for SBA loans — so this work strengthens your business borrowing too. (See the Building Business Credit module.)

Note: General educational information for 2026, not financial advice. Scoring models and rules change; confirm specifics at AnnualCreditReport.com and the CFPB (consumerfinance.gov). For deep debt trouble, a nonprofit credit counselor or licensed advisor can help with your specific situation.