Credit score

📈 Economics By CampusDown Wiki Editorial Team Last updated October 26, 2026

A credit score is a three-digit number, usually 300–850, that estimates how likely you are to repay debt. Lenders use it to set loan approvals and interest rates.

Contents

1. What's in a FICO score
2. How to raise it
3. FAQ
4. References

What's in a FICO score

FICO weighs payment history (35%), amounts owed or credit utilization (30%), length of credit history (15%), new credit (10%), and credit mix (10%). A score of 670–739 is generally "good," and 800+ is exceptional. A single 30-day late payment can knock off dozens of points.

How to raise it

Pay every bill on time, keep utilization under about 30% (lower is better), and avoid closing your oldest cards. Hard inquiries from loan applications ding your score slightly; checking your own score is a soft inquiry and doesn't hurt. A higher score means a lower rate on a mortgage or car loan, even when the Fed's policy rate is the same.

FAQ

Does checking my own score lower it?: No, that's a soft inquiry.
How long do late payments stay on my report?: Up to seven years.

Sources reviewed: 2026-10-26

References

Fair Isaac Corporation. What's in my FICO Scores? myFICO.
Consumer Financial Protection Bureau. What is a credit score?
금융위원회. (2021). 개인신용평가 점수제 전환 안내.

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This article was last updated on October 26, 2026. It is based on widely recognized original works and textbooks; when citing it in a paper, please check the original sources listed in the references.