Level 1 — Money Basics · 6 min
Credit Scores, Plainly
What the number is, what actually moves it, and the free ways to watch it.
A credit score summarizes your borrowing track record for lenders. In the dominant models, payment history and how much of your available credit you're using ('utilization') carry the most weight; length of history, new applications and account mix fill out the rest.
Moving it is boring on purpose: pay every account on time (autopay minimums guarantees the floor), keep card balances low relative to limits, keep old no-fee cards open, and apply for new credit sparingly. There is no legitimate overnight fix — anyone selling one is selling something else.
Watching it is free: AnnualCreditReport.com is the official site for your full reports from all three bureaus (now free weekly), and many banks show a score in their apps. Check reports yearly for errors — disputing genuine errors is free and effective, per the FTC.
- Utilization
- Card balances divided by card limits — lower reads as safer.
- Credit report vs. score
- The report is the history; the score is a grade computed from it.
- Hard inquiry
- A lender's check when you apply for credit; several in a short window can trim the score temporarily.