Your credit history is a record of how you've borrowed and repaid money over time — lenders use it to decide whether to approve you for credit and what interest rate to offer. Building good credit history takes time, but a few habits do most of the work.
Three major consumer reporting agencies — Equifax, Experian, and TransUnion — each maintain their own record of your credit history, which can differ slightly between bureaus since not every lender reports to all three. FICO Scores, the most widely used credit scoring model, range from 300 to 850 and are calculated separately from each bureau's data, which is why you may see slightly different scores depending on where you check.
Payment history (paying on time) and credit utilization (how much of your available credit you're using) are typically the two biggest factors — late payments and high utilization relative to your limits are the fastest ways to damage a score. Length of credit history, the mix of credit types you have, and recent hard inquiries (from applying for new credit) matter too, but generally less than the first two.
You're entitled to a free copy of your credit report from each of the three bureaus — checking your own report doesn't affect your score (this is different from a lender's "hard inquiry" when you apply for credit). Review your reports periodically for errors or unfamiliar accounts, which can be an early sign of identity theft — see the fraud protection guide on this site for what to do if you spot something wrong.
Informational content, not financial, tax, or legal advice. Verify amounts, limits, and current conditions directly with official sources (IRS, FDIC, SEC, CFPB) before making a decision.
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