Credit Scores Explained: What Actually Moves the Needle

Credit scores can feel mysterious, intimidating, or even frustrating. But the truth is, they’re built on a few clear factors—and small, consistent habits make a bigger difference than most people realize.

Let’s break down what actually impacts your credit score and what doesn’t.

What Your Credit Score Is Really Measuring

Your credit score is designed to show lenders how likely you are to repay borrowed money responsibly. It’s not a judgment of character—it’s simply a snapshot of financial behavior over time.

The Biggest Factors That Affect Your Score

1. Payment History
   This is the most important factor. Paying bills on time—every time—has the strongest positive impact. Even one late payment can make a difference.
2. Credit Usage
   Using too much of your available credit can hurt your score. Keeping balances lower relative to credit limits shows lenders you’re managing credit wisely.
3. Length of Credit History
   Longer credit histories tend to help. That’s why closing old accounts isn’t always a good idea, even if you don’t use them often.
4. Credit Mix
   Having a variety of credit types—such as loans and credit cards—can be helpful, but it’s less important than paying on time.
5. New Credit Activity
   Opening several new accounts in a short period can temporarily lower your score. Slow and steady usually wins here.

Common Credit Score Myths

• Checking your own credit hurts your score
  Not true. Monitoring your credit is smart and safe.
• You need to carry a balance to build credit
  False. Paying balances in full can still help your score.
• Income affects your credit score
  It doesn’t. Credit scores are based on behavior, not earnings.

Simple Habits That Help Over Time

Improving credit isn’t about quick fixes—it’s about consistency:

• Pay bills on time
• Keep balances manageable
• Review credit reports regularly
• Avoid unnecessary new accounts

The Bottom Line
Your credit score is a tool, not a life sentence. With steady habits and a little patience, it can improve over time.

If you ever have questions about your credit or want help understanding your options, Old Ocean FCU is here to help you make sense of it all.