What a credit score is
A credit score is a three-digit number, typically between 300 and 850, that summarizes how you've handled credit. Lenders use it to estimate how likely you are to repay what you borrow. Most scores are built from the information in your credit reports at Experian, Equifax and TransUnion.
The five factors
Payment history (about 35%) is the biggest driver — paying on time matters most. Amounts owed, especially credit utilization, makes up roughly 30%. Length of credit history is around 15%, while new credit and credit mix each account for about 10%.
What counts as a good score
While every lender sets its own rules, scores above 670 are generally considered good, above 740 very good, and above 800 exceptional. Moving from one band to the next can meaningfully improve the rates you're offered.
How to improve it
Pay every bill on time, keep balances low relative to limits, keep old accounts open where sensible, and apply for new credit only when you need it. Improvement is a habit, not a hack.
Ready to put this into practice?
Get Started For Free