Credit score — how it actually works

A credit score is a number lenders use to estimate how reliably you pay back borrowed money. Five factors drive it: payment history, credit utilization, length of credit history, credit mix, and new credit.

Try it: utilization

Utilization = balance ÷ credit limit. Most experts aim for ≤ 30%.

Card balance ($)

Credit limit ($)

Utilization 30%

Good (≤ 30%)

Educational only — not financial advice.

What to do next

Lesson: How credit scores actually work

Sam, age 18, builds credit from zero. Month-by-month.
Article: What is a credit score?

A teen-readable deep-dive — and what to do at 18.
Glossary: Credit utilization

The single biggest lever after payment history.