In America, your credit score is almost as important as your identity. A high credit score helps you save money on loans, qualify for better apartments, and even lower your insurance premiums.
1. What Is a Credit Score?
FICO score ranges from:
- 300–579: Poor
- 580–669: Fair
- 670–739: Good
- 740–799: Very Good
- 800–850: Excellent
2. The 5 Factors That Affect Your Score
1. Payment History — 35%
Late payments destroy credit.
2. Credit Utilization — 30%
Use less than 30% of your credit limit.
3. Credit Age — 15%
Older accounts help more.
4. Credit Mix — 10%
A combination of:
- Credit cards
- Auto loans
- Mortgage
- Personal loans
5. Inquiries — 10%
Too many applications lower your score.
3. How to Build Credit Fast (American Method)
Step 1: Get a Secured Credit Card
Deposit $200–$500 → credit limit.
Step 2: Use 10% of limit only
If your limit is $300, use only $30.
Step 3: Pay entire balance before due date
Step 4: Keep credit card open forever
Step 5: Become an Authorized User
Ask a family member with good credit to add you.
4. Credit Cards That Help Build Credit in the USA
- Discover it Secured
- Capital One Platinum Secured
- Chime Credit Builder
- Petal 1 Visa
5. Common Credit Mistakes Americans Make
- Closing old cards
- Maxing out cards
- Paying minimum due only
- Excessive hard inquiries
6. How Long Does It Take to Reach 700+?
If you follow all steps:
- Fresh start: 6–12 months
- Repairing bad credit: 12–24 months