Why did my credit score drop?

The most common reasons: a late payment was reported (even 1 day late to the bureau), your credit utilization increased (e.g., you charged more this month), you applied for new credit (hard inquiry), an account was closed (reducing available credit), or a collection appeared. Our detailed guides below cover each scenario.

How do I build credit from scratch?

Start with a secured credit card (you deposit $200-$500 as collateral), use it for small recurring purchases, and pay the full statement balance every month. After 6-12 months of on-time payments, you'll have enough history to qualify for unsecured cards. Being added as an authorized user on a family member's old card can also jumpstart your score.

What's a good credit score?

670+ is considered good, 740+ is very good, 800+ is exceptional. For the best mortgage rates, aim for 760+. For credit card approval, most rewards cards require 670-700+. The national average FICO score is around 715.

Credit Score & Credit Report – Build, Fix & Understand Your Credit

Your credit score is a three-digit number that controls the interest rates you pay on mortgages, auto loans, and credit cards — and it can cost or save you tens of thousands of dollars over your lifetime. These guides explain exactly why your score changed, how to fix mistakes, and how to build strong credit from scratch.

For a complete overview of how credit scores work, see our Credit Score Guide — covering FICO vs. VantageScore, the five scoring factors, and how to improve your score at every level.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy