Credit-scoring has become more complex since the FICO Score was first introduced, but the Credit Score Path is simple and straightforward.
When you identify your concerns and priorities, you’ll start work on your action plan to build, repair, improve or protect your credit.
Guiding Principle for the Credit Score Path
Build the habits that produce a solid financial reputation.
How the Path Works
Learn it.
- Understand how credit works and why improving it takes time.
- Discover how to simplify taking care of your credit.
- Learn to address credit concerns like collection calls and identity theft.
Plan it.
- Pull your credit report to identify any errors.
- Diagnose and fix low credit scores.
- Investigate options to build, repair, improve, or protect your credit score.
Do it!
- Consider financial tools to build or repair credit.
- Set up two-factor authentication and automatic payments.
- Reevaluate credit utilization and payment history in light of new goals.
TIP: Good credit is foundational, so it’s important to take this path early if you need to build, improve, repair, or protect your credit.
Topics Covered
The Credit Score Path helps simplify the process whether you need to build, improve, repair, or protect your credit.
Since good credit paves the way to almost every financial goal you might have, it’s important to understand credit and master it now. First, identify your priorities. Then our guides and articles can help you with the mechanics step by step:
- How credit scores are calculated
- What actions help you reach excellent credit most effectively
- How to track, monitor, and protect your credit
- How to use credit wisely to build wealth.
The most common topics are explored:
- How long will it take to improve my credit score?
- Should I monitor my credit myself?
- Why don’t I see any improvement to my credit score?
- Should I close my credit card account if I’m not using it?
- Why does it matter when I start working on my credit?
- Is there any way to fix my credit faster?
Frequently Asked Questions
What are the FICO credit score ranges?
The FICO score is one of the most common credit scoring models in use today. Here are the ranges for the FICO score:
- 800 – 850 | Excellent
- 740 – 799 | Good to Very Good
- 670 – 739 | Fair to Good
- 580 – 669 | Poor to Fair
- 300 – 579 | Very Poor to Poor
How often do credit scores change?
A variety of factors affect your credit score, and they can change and make your score fluctuate frequently – if not every day. That’s normal and shouldn’t be of concern for the most part. Do check it periodically, though, especially if you’re trying to build, repair, or improve your credit score.
Can my student loan affect my credit?
Yes. Your student loan factors into your credit in the following ways:
- The amount you owe on your loans
- Your payment history
- How long you’ve had the loans and the mix of credit types
What is the average credit score in the U.S.?
Experian[1] reported that the average FICO score in the U.S. was 715 in 2023. It increased one point from 2022.
Sources:
- What Is the Average Credit Score in the U.S.?
Chris Horymski – Experian
01-22-24 | Accessed: 12-05-24
