What Is a Good Credit Score, and How Do You Raise It?

By Alexander, Squared Roots Co. · November 2, 2026 · 6 min read

Your credit score is a three-digit number that a lot of people treat like a grade on who you are. It isn't. It's a summary of how you've used borrowed money, calculated from your credit reports. It can change, and the things that change it are more predictable than most people think.

Here's what counts as "good," what actually moves the number, and what you can do about it starting this month.

What counts as a good credit score

There are different scoring models, but the one most lenders use is the FICO Score. Most scores run from 300 to 850. FICO's own education site groups them like this:

Source: myFICO, "What is a credit score?", checked November 2026.

So a "good" score generally starts around 670. You'll also see VantageScore numbers in banking apps and free credit sites. They use a similar 300–850 scale but a different formula, so don't be surprised if your app and your lender show different numbers. Watch the direction your score is moving more than the exact number.

The five things that make up your score

FICO publishes the rough weight of each factor in its scoring formula:

Notice what's not on the list: your income, your job, your savings, or how much money you have in the bank. A person earning $28,000 a year can have an excellent score. The score is about habits, not paychecks.

The top two factors make up about two-thirds of the score. That's where to focus.

Step 1: Never miss a minimum payment

Payment history is the biggest piece. A late payment that gets reported can drag a score down for a long time, so the single most protective move is making sure every account gets at least its minimum, every month.

• Turn on autopay for the minimum on every card and loan. You can always pay more by hand. Autopay is the safety net.
• Line up due dates with paydays. Many card issuers will let you change your due date if you ask. If you're paid on the 1st and 15th, a due date of the 20th is much easier to hit than the 3rd.
• If you can't pay, call before the due date. Ask about a hardship program or a different payment date. It's a much easier conversation before a payment is late than after.

Step 2: Lower how much of your limit you use

"Amounts owed" is mostly about credit utilization: your card balances divided by your card limits. Using a big share of your limit can signal risk, even if you pay on time. Lower is better.

This is often the fastest factor to improve, because utilization is mostly based on your current balances. Pay them down and, once the new balances are reported, the score can respond.

A worked example

Jordan has two credit cards:

Jordan's overall utilization is 40%, and Card A is nearly maxed out, which also counts against them.

Jordan gets a $900 tax refund and puts it all on Card A:

Overall utilization drops from 40% to 20%, and no single card is close to its limit anymore. Nothing else changed, and Jordan didn't open or close anything.

Two small tricks help here:

• Pay before the statement closes, not just before it's due. Card issuers usually report the balance on your statement. If you make a payment a few days before the statement date, a lower balance gets reported.
• Don't close your oldest cards to "clean up." Closing a card removes its limit, which can push your utilization up. If an old card has no annual fee, it's often better to keep it open and use it for one small bill on autopay.

If paying down balances is the hard part, our guide to the debt snowball vs. the debt avalanche can help you choose an order and stick with it.

Step 3: Check your reports for mistakes

Your score is built from your credit reports, so an error on a report can cost you points. You can get free reports from Equifax, Experian and TransUnion every week at AnnualCreditReport.com. The FTC confirms the weekly free reports are now permanent and warns that look-alike sites may charge you or try to steal your information, so type the address yourself.

Look for accounts you don't recognize, late payments you know were on time, and balances that are wrong. If you find an error, you can dispute it with the credit bureau and the company that reported it. The Consumer Financial Protection Bureau has step-by-step instructions and sample dispute letters.

Step 4: Go slow on new credit

Each application for new credit can lead to a "hard inquiry," and a cluster of new accounts can lower your average account age. That doesn't mean never apply for anything. It means:

• Apply only for credit you actually need.
• Be wary of store-card offers at checkout. The 10% off today isn't worth it if the card is one you'll never use again.
• If you're shopping for a car loan or mortgage, do your rate shopping within a short window rather than spreading it out over months.

Be careful with "quick fix" offers

No legitimate company can remove accurate, recent negative information from your report. You can dispute errors yourself for free. If someone wants an upfront fee to "erase" bad credit, walk away. The CFPB explains how to tell a credit repair scam from a reputable counselor.

The short version

1. A "good" FICO Score generally starts around 670.
2. Paying on time and keeping balances low make up about two-thirds of your score.
3. Autopay the minimums, pay before the statement closes, and keep old cards open.
4. Check your free reports at AnnualCreditReport.com and dispute anything wrong.
5. Give it time. Good habits show up in the score month by month.

If you're working on your credit and your budget at the same time, the free money worksheet helps you see what you can put toward balances each month. When you're ready for a full plan, the Squared Roots Co. Money Toolkit includes a debt payoff planner that shows your debt-free date and a budget that keeps every payment on track. Get the toolkit.