300 → 850, the journey
A credit score is a 3-digit number (usually 300-850) that summarizes how trustworthy you look as a borrower. The most common version is the FICO score.
Poor
<580
<580
Fair
580-669
580-669
Good
670-739
670-739
Very Good
740-799
740-799
Excellent
800+
800+
The 5 ingredients (ranked by weight)
Payment history
35%
Did you pay on time? This is everything. One 30-day late payment can drop you 60+ points.
Amounts owed (utilization)
30%
How much of your credit limit are you using? Keep it under 30%. Under 10% is even better.
Length of credit history
15%
How long you've had credit accounts. This is why you start ASAP — time is the only fix.
Credit mix
10%
A mix of card + loan looks better than just one type. Don't stress this early on.
New credit
10%
Applying for many new cards in a short time looks desperate. Space applications out.
The 80/20 rule for credit scores
65% of your score = pay on time + don't max out your cards. Master those two and you're already above most adults.
How "utilization" actually works
If your card has a $1,000 limit and your balance is $400, your utilization is 40%. Score-wise:
Utilization → score impact (rough)
| 0-9% used | Best |
| 10-29% | Great |
| 30-49% | Noticeable hit |
| 50-74% | Hurts |
| 75%+ | Hurts a lot |
How to build a 750+ score from zero
- Year 0: Get a starter card (student or secured). Use it for one small thing per month — a $10 subscription is perfect.
- Year 0-1: Autopay the statement balance. Keep utilization under 10%.
- Year 1: Score lands around 700.
- Year 2-3: Score climbs to 740-780 with continued on-time payments.
- Year 4+: 800+ is realistic. You qualify for the best interest rates on every loan you'll ever take.
You're done with the course
That's it — you now know more about credit than most adults. Play with the Credit Score Builder to see how the 5 factors balance out, then revisit any lesson anytime.