Credit
Credit scores, credit cards, how to build or repair your credit history.
Your credit profile is built from records held by the three nationwide credit bureaus — Equifax, Experian, and TransUnion — plus the scoring models layered on top of them (FICO and VantageScore). Federal law gives you specific rights to access, dispute, and correct that record. Understanding what's on your report, how scores are calculated, and which actions actually move them is the foundation of every credit decision — from a credit card application to a mortgage.
Key laws
Key agencies and resources
Important deadlines and limits
| Credit bureau dispute investigation | 30 days from receipt (FCRA) |
| Free weekly credit reports | Available year-round at AnnualCreditReport.com |
| Most negative items removed | 7 years from original delinquency date |
| Chapter 7 bankruptcy reporting | 10 years from filing |
| Hard inquiry impact | Stays on report 2 years; affects score ~12 months |
All credit questions (19)
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Does closing a credit card hurt your credit score?
Yes — closing a card can lower your score by raising your utilization ratio and reducing your average account age. Here's when it's worth it anyway.
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Does paying rent build credit?
Rent payments do not automatically appear on your credit report — fewer than 5% of tenants have rent reported — but you can actively add rent to your Experian file for free via Experian Boost, or use a paid rent-reporting service to reach all three bureaus.
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How do I build credit from scratch?
A secured credit card is the fastest way to build credit from zero — use it for small purchases, pay in full each month, and you'll have a scoreable history within 3–6 months.
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How do I dispute an error on my credit report?
You have a federal right to dispute inaccurate information on your credit report for free — contact the credit bureau directly in writing, include supporting documents, and the bureau must investigate within 30 days.
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How do I freeze my credit?
A credit freeze is free and can be placed online in minutes — you must contact each of the three bureaus (Equifax, Experian, TransUnion) separately, and each must freeze your file within one business day; it blocks new lenders from accessing your report until you lift it.
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How do I get my free credit report?
Go to annualcreditreport.com — the only federally authorized source — and request your free report from each of the three bureaus (Equifax, Experian, TransUnion); federal law entitles you to at least one free report per bureau per year.
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How do I remove a collection from my credit report?
Collections generally stay on your credit report for 7 years from the original delinquency date. You can remove them early by disputing errors under the FCRA, or by negotiating a pay-for-delete agreement with the collector — though collectors are not legally required to delete accurate, verified accounts.
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How do I use a balance transfer without hurting my credit?
A balance transfer temporarily lowers your credit score from a hard inquiry and a new account, but it improves your score over time by reducing credit utilization if you don't run up the original card's balance again. The main risk isn't the transfer — it's the behavior after it.
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How long does a hard inquiry affect your credit score?
A hard inquiry drops your score by fewer than 5 points on average and stops affecting it after 12 months — but stays on your report for 2 years.
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How long does it take to build credit?
You need at least six months of account history to generate a FICO score; reaching a good score (670+) typically takes one to two years of consistent on-time payments and low utilization.
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Is a credit card annual fee worth it?
An annual fee is worth paying if the card's rewards, credits, and benefits return more value than the fee costs. The math is straightforward: add up the benefits you'll actually use, subtract the fee. If the net is positive, the fee pays for itself.
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What credit score do I need to get a mortgage?
Most conventional loans require a minimum 620 FICO score. FHA loans allow scores as low as 580 with 3.5% down, or 500 with 10% down. Your score also affects your interest rate — a 760+ score typically gets the best available rates, which can mean tens of thousands of dollars in savings over the life of a loan.
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What is a credit-builder loan?
A credit-builder loan works in reverse: you make monthly payments first, and receive the money at the end — the payments are reported to credit bureaus, building your credit history while you simultaneously save the loan amount.
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What is a good credit score?
740 or above is where you qualify for the best rates on loans and credit cards. Getting from 650 to 740 saves far more money than getting from 740 to 800.
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What is a secured credit card?
A secured credit card requires a cash deposit — usually $200–$500 — that becomes your credit limit; you use it like a regular card and the issuer reports your payments to the credit bureaus, building your credit history.
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What is an authorized user on a credit card?
An authorized user is someone added to another person's credit card account who can use the card but has no legal obligation to pay the balance. The account's payment history may appear on the authorized user's credit report, which can help build credit — but the primary cardholder is entirely responsible for the debt.
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What is credit utilization and how does it affect my score?
Credit utilization is the percentage of your revolving credit limit you're currently using — it makes up 30% of your FICO score, and keeping it below 10% (not just 30%) gives you the best possible impact.
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What is the difference between a soft inquiry and a hard inquiry?
A hard inquiry happens when a lender pulls your credit after you apply for credit and can temporarily lower your score by a few points; a soft inquiry — like checking your own credit or a pre-approval check — has no effect on your score at all.
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What is the difference between VantageScore and FICO?
FICO and VantageScore are competing credit scoring models that use the same 300–850 scale but weigh factors differently — FICO is used by roughly 90% of top lenders for lending decisions, while VantageScore is what most free credit monitoring tools show.