It is one of the most important numbers in your financial life: your credit score.

Your credit score tells lenders how likely you are to repay borrowed money. The higher your score, the more confident a lender may feel extending credit to you. A strong score can make it easier to qualify for loans and may help you secure lower interest rates, which can save you money over time. If your score is lower, you may still be approved, but the loan could come with higher rates or less favorable terms.

Despite its importance, many Americans rarely check their credit scores. Surveys from organizations like VantageScore Solutions and the Consumer Federation of America show that understanding of credit scores has declined in recent years. That is why Citizens Bank is committed to helping you better understand how your score works and how to strengthen it.

What Is a Good Credit Score?

Most lenders use either the FICO or Vantage Score model. Both generally range from 300 to 850, with higher scores indicating stronger credit profiles.

Credit scores are typically categorized as:

Excellent: 800 to 850
Very Good: 740 to 799
Good: 670 to 739
Fair: 580 to 669
Poor: 300 to 579

When you apply for a mortgage, auto loan, or credit card, this number helps the lender assess risk. A higher score signals lower risk. Your credit score is not permanent. It changes over time based on your financial habits, which is why monitoring it regularly is important.

What Makes Up Your Credit Score?

While scoring models vary slightly, most credit scores are calculated using similar factors from your credit history:

Payment History
This is one of the most significant factors. Making payments on time and in full helps your score. Late or missed payments can have a negative impact.

Age of Credit
This refers to how long your credit accounts have been open, averaged across all accounts. A longer credit history generally benefits your score. That is why some financial professionals advise keeping older accounts open, even if they are paid off.

Credit Mix
Lenders like to see experience managing different types of credit, such as credit cards and installment loans.

Credit Utilization
This measures how much of your available credit you are using. Lower utilization demonstrates responsible credit management. Using too much of your available credit can lower your score.

Total Debt Levels
The overall amount you owe can influence your score, particularly if balances remain high compared to original loan amounts or if credit cards are near their limits. However, carrying debt does not automatically mean a low score. Consistent, on time payments and responsible usage matter most.

Each of these factors carries a different weight. Payment history and debt levels generally have the largest impact, while other components play smaller roles. Additional considerations can include public records such as bankruptcies, the number of recently opened accounts, and recent credit inquiries.

How Do You Compare?

National averages vary over time, but many Americans fall within the “good” credit range. The important question is not how you compare to others, but whether your score supports your financial goals.

If you would like guidance on building or improving your credit, or if you are considering opening a credit card to establish or strengthen your credit history, the team at Citizens Bank is here to help. Your credit score may feel complex, but with the right knowledge and support, it can become one of your strongest financial tools.