Updated March 2026 | how to build credit score
Your FICO credit score (300-850) is calculated from 5 factors:
Payment History (35%): The single biggest factor. One 30-day late payment can drop your score 60-100 points. Pay every bill on time, every time. Set up autopay for at least the minimum payment.
Credit Utilization (30%): How much of your available credit you are using. Using $3,000 of a $10,000 limit = 30% utilization. Keep this under 30%, ideally under 10%. This factor updates monthly.
Length of Credit History (15%): Average age of your accounts. Keep old accounts open even if you do not use them. Do not close your oldest credit card.
Credit Mix (10%): Having different types of credit (credit cards, installment loans, mortgage). A mix shows you can handle different types of debt.
New Credit Inquiries (10%): Each hard inquiry (when you apply for credit) can drop your score 5-10 points for 12 months. Limit applications to when you actually need credit.
Month 1: Get a secured credit card. You deposit $200-$500 as collateral, and that becomes your credit limit. Use it for one small recurring charge (like a streaming subscription) and pay it in full every month.
Month 1-2: Become an authorized user on a family member credit card with good history. Their positive payment history gets added to your report.
Month 3: Get a credit-builder loan from a credit union ($500-$1,000). The money goes into a savings account, you make monthly payments, and you get the money back when the loan is paid off.
Month 6: Apply for a student or starter unsecured credit card.
Month 12: You should have a FICO score of 650-700+ if all payments were on time and utilization stayed low.
Month 18-24: With continued perfect payments, you can reach 720-750.
1. Get your free credit reports from AnnualCreditReport.com. Dispute any errors (35% of reports contain errors).
2. Pay all past-due accounts current immediately. Late payments hurt less as they age.
3. Pay down credit card balances below 30% utilization. If possible, below 10%. This is the fastest way to boost your score (updates within 30 days).
4. Do NOT close old accounts, even if paid off. Closing reduces your available credit and increases utilization.
5. Negotiate pay-for-delete on collections. Some collectors will remove the negative mark if you pay in full. Get it in writing before paying.
6. Use Experian Boost to add positive payment history from utilities, phone, and streaming services.
7. Set every bill to autopay. One more late payment will undo your progress.
Timeline: You can improve your score 50-100 points in 30-90 days by fixing utilization and errors. Rebuilding from bad credit to good (700+) typically takes 12-24 months of consistent positive behavior.