When we think about managing our finances, some of the first few things that come to mind are budgeting, saving, and perhaps, dealing with debt. For many people, their credit score isn’t something they consider until it’s time to apply for a loan or buy a home. As such, we tend to forget how important our credit score is and why we must take care of it.
A recent study of how people manage their finances shows that even small, everyday choices can leave a lasting mark on their credit score health. Simple things like forgetting to pay a minor bill or not realizing they’re increasing their credit utilization can quickly become bigger issues that affect a good credit score.
So, what are the sneaky things that affect your credit score, and how can you steer clear of them? We’ll break down the key things that affect it and, more importantly, look at how you can solve them below.
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What is a good credit score?
How much is a good credit score?
7 habits that could secretly be harming your credit score
How to avoid these hidden credit score mistakes
Why is a good credit score important?
Take control of your credit score today
What is a good credit score?
A credit score is a three-digit number, typically ranging from 300 to 850, and it shows how trustworthy you are when repaying borrowed money. A high credit score signals responsible financial behavior, while a lower score might suggest room for improvement. Lenders, landlords, and even some employers use credit scores to assess a person’s financial responsibility. Credit scores are usually calculated based on the following key factors:
Payment history
This measures whether you consistently pay your bills on time, including credit cards, loans, and utilities. Late or missed payments can negatively affect your score, even by a few days. A consistent payment history shows lenders you’re reliable and responsible.
Credit utilization
This refers to the percentage of your available credit you’re using. For example, if your total credit limit is 10,000 USD and you owe 3,000 USD, your credit utilization rate is 30%. Keeping this ratio low, ideally below 30% is key. High utilization suggests financial strain, which can lower your score.
Credit history length
This considers how long your credit accounts have been active. Lenders look at the age of your oldest account, your newest account, and the average age of all your accounts. A longer credit history gives lenders more insight into your financial habits, so keeping older accounts open can help your score.
Credit mix
This evaluates the different types of credit you manage, such as credit cards, auto loans, and mortgages. A mix of credit types shows you can handle multiple financial responsibilities. While not as critical as payment history or utilization, it still positively contributes to your score.
Credit bureaus like Experian, TransUnion, and Equifax compile this information into reports, which lenders use to assess your reliability.
With ExpressVPN’s Credit Scanner, you can view your Experian credit score and rating, giving you instant insight into your financial health. Whether you’re tracking changes, receiving alerts about potential activity, or diving into detailed factors affecting your score, Credit Scanner keeps everything simple and accessible through the ExpressVPN app. Currently available to ExpressVPN users in the U.S.
How much is a good credit score?
A good credit score typically falls within the range of 670 to 739, based on the FICO scoring model, which lenders widely use. Here’s how credit scores are generally categorized:
| Poor (300–579) | This range indicates significant credit issues, such as missed payments or defaults. Borrowers in this range may struggle to secure loans or face high interest rates. |
| Fair (580–669) | Below average but not the worst. Borrowers may still qualify for credit, but terms are often less favorable. |
| Good (670–739) | The range where most borrowers aim to be. This reliable score allows for better loan options and reasonable interest rates. |
| Very Good (740–799) | A strong score signals solid financial habits. Borrowers in this range often receive favorable terms and perks from lenders. |
| Excellent (800–850) | The gold standard. Borrowers with excellent credit typically qualify for the best interest rates and financial products. |
7 habits that could secretly be harming your credit score
Even if you’re responsible with money, small financial habits could be quietly lowering your credit score. Unlike major red flags like missed payments or loan defaults, these behaviors are easy to overlook—but they can add up over time, making it harder to get approved for loans, rentals, or even credit card perks. Here’s what might be holding your score back and how to fix it.
1. Checking your credit score too often
Many people assume checking their credit frequently is good financial hygiene—but if you’re using services that perform hard inquiries, it can actually lower your score. Hard inquiries occur when lenders pull your credit report to approve loans or credit cards, and multiple checks within a short time frame can signal financial distress.
2. Ignoring old debts you thought were gone
Unpaid debts don’t just disappear. Even small balances from forgotten utility bills, medical expenses, or closed credit cards can end up in collections, slashing your score. Worse, debt collectors can resell old debts, making them resurface on your credit report years later.
3. Applying for store credit cards just for discounts
Retailers love to offer one-time discounts when you sign up for a store credit card—but opening too many new accounts in a short period can hurt your credit. Each new card lowers the average age of your accounts and triggers hard inquiries, which temporarily drop your score.
4. Letting small automatic payments slip through
Subscription services, gym memberships, or small recurring charges may seem insignificant, but even one missed payment can stay on your credit report for years. Some services don’t report positive payment history but will flag missed payments, leading to a one-sided impact on your score.
5. Using too much credit, even if you pay it off
A high credit utilization rate—even if you pay your bill in full every month—can lower your score. Credit bureaus look at the balance on your statement closing date, not just whether you clear it before the due date.
6. Closing old accounts without thinking twice
It might seem smart to close unused credit cards, but doing so can shorten your credit history and increase your utilization rate, both of which can lower your score. The age of your accounts contributes to about 15% of your credit score, so older accounts carry weight.
7. Not checking your credit report for errors
Millions of people have inaccurate credit reports due to clerical errors, fraud, or outdated information. These mistakes can lead to lower scores, higher interest rates, and even loan denials. Yet, many people never check their reports to catch them.
How to avoid these hidden credit score mistakes
Monitor your credit without hurting your score
Instead of using services that trigger hard inquiries, opt for tools that use soft inquiries—which let you check your credit without lowering it.
Keep an eye on old debts
Check your credit report regularly for unresolved balances or accounts that may have been sent to collections. If you find an old debt, reach out to the creditor to settle it or dispute inaccuracies.
Be selective about new credit cards
Store credit card offers can be tempting, but think twice before signing up. If you need a new credit card, space out applications to avoid a sudden drop in your credit score.
Automate payments to avoid small but costly mistakes
Set up automatic payments for subscription services, utilities, and credit cards. Even small missed payments can leave a lasting mark on your credit report.
Manage your credit utilization wisely
Try to keep your credit utilization below 30%, even before your statement is due. Making multiple small payments throughout the month can help keep your utilization low.
Keep old accounts open
Unless an account has high fees, keeping older credit cards open helps maintain a longer credit history and a better utilization ratio.
Use ExpressVPN’s Credit Scanner to stay on top of changes
Regularly reviewing your credit report is the best way to catch errors, fraud, or potential issues before they escalate. ExpressVPN’s Credit Scanner lets you monitor your credit activity in real-time so you can stay informed without affecting your score.
Why is a good credit score important?
Your credit score doesn’t just affect whether you get approved for a loan. Your credit score influences many aspects of your financial and personal life. Here’s why maintaining a good credit score is essential:
Better loan terms
A high credit score means lenders view you as a reliable borrower, which often translates to lower interest rates and better terms for loans and credit cards. This can save you thousands of dollars over time.
Easier approval for housing
Landlords and property managers frequently check credit scores to assess your reliability as a tenant. A good score increases your chances of securing your desired rental property without additional hurdles, such as needing a co-signer.
Lower insurance premiums
Many insurance providers use credit scores to calculate auto, home, and even life insurance premiums. A strong credit score can help you secure lower rates.
Employment opportunities
Some employers, particularly those in financial industries, review credit reports as part of their hiring process. A good credit score reflects responsibility and trustworthiness.
Utility and mobile phone contracts
Utility companies and mobile carriers may run a credit check before setting up service. A low credit score can lead to higher deposits or even denial of service, while a good score ensures smoother approvals.
Interest-free financing options
Retailers offering interest-free financing for appliances, electronics, or furniture often require a good credit score. A higher score can help you qualify for these promotions without paying extra interest.
Lower security deposits
A strong credit score can save you from paying large security deposits for rentals, utility accounts, or other services, freeing up cash for other needs.
Emergency flexibility
Life is unpredictable, and having a good credit score ensures you’ll have access to credit when you need it most—for an unexpected medical expense, car repair, or other emergency.
Peace of mind
A good credit score is a financial safety net. It gives you more options and greater freedom to make decisions about your life without worrying about being denied credit or paying exorbitant interest rates.
Take control of your credit score today
Small habits can have a big impact on your financial future. By avoiding these lesser-known credit mistakes and keeping an eye on your credit report, you can maintain a strong score and protect your financial health.
With ExpressVPN’s Credit Scanner feature, you can easily track your credit activity, spot issues early, and stay informed—all without affecting your score. Available to U.S. users with a 1- or 2-year ExpressVPN plan.
FAQ: About good credit scores
What is a good credit score by age?
Credit scores don’t have age-specific benchmarks, but they often reflect your financial habits and credit history length, which naturally improve as you age. Here’s a general guide:
- 18 to 24 Years Old: Many young adults are just starting to build credit. Scores in the mid-600s are common as they establish their credit histories.
- 25 to 34 Years Old: With more time to manage credit, scores often climb into the 670 to 740 range, especially for those practicing good financial habits.
- 35 to 49 Years Old: By this stage, many have well-established credit histories, often leading to scores in the 700s or higher.
- 50+ Years Old: People in this age group typically maintain the highest scores (above 750) due to long credit histories and consistent repayment habits.
Remember, these are averages, and individual scores can vary based on financial behavior, not just age.
What are the five levels of credit scores?
Credit scores generally fall into five categories, according to the FICO scoring model:
- Poor (300–579): Significant credit issues, such as defaults or high debt. Approval for new credit is rare.
- Fair (580–669): Below average but not terrible. Credit approval is possible, but terms may be less favorable.
- Good (670–739): Considered a solid score. Most lenders offer decent terms and approval rates.
- Very Good (740–799): A strong score that typically qualifies for better rates and credit card perks.
- Excellent (800–850): The gold standard of credit scores. Borrowers in this range often receive the best loan terms and lowest interest rates.
What is a good credit score to buy a house?
While requirements vary by lender, a credit score of 620 is often the minimum needed to qualify for most conventional mortgages. However, a higher score can save you thousands over the life of your loan:
- 620–679: You’ll qualify for a loan, but interest rates may be higher.
- 680–739: A good range for securing favorable terms on conventional loans.
- 740+: The sweet spot. Borrowers in this range qualify for the best interest rates and mortgage options.
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