DayCents

Credit Score

A credit score is a three-digit number (usually 300–850) that predicts how likely you are to repay borrowed money. Lenders use it to decide whether to approve you and what rate to charge — a higher score can save tens of thousands in interest over a mortgage or auto loan.

Payment history is roughly 35% of the score and utilization about 30%, followed by account age, credit mix and new inquiries. Utilization is the fast lever, because it is recalculated every billing cycle and carries no memory of last year's balance — though issuers usually report the statement balance, so paying in full after the statement closes can still show high utilization. What the difference is worth in money: on a $350,000 thirty-year mortgage, the gap between 6.5% and 7.0% is about $116 a month and roughly $41,900 over the loan. You also have three scores, one per bureau, and a 20-point spread between them is unremarkable.