Whether you're new to credit, rebuilding after a setback, or just want to understand how credit decisions are made — this guide can help you get started.
You’ll learn the basics of how credit scores generally work and find practical steps that can help you better understand your credit and build healthier habits over time.
Get your free credit report & check for errors
Learn what goes into a credit score
Choose practical steps that may help you strengthen your credit over time
Familiarize yourself with credit building tools
Get free help from trusted resources
Step: 1
You can get free reports from the three major credit bureaus: Equifax, Experian and TransUnion. You can request them for free once a year at AnnualCreditReport.com, the official, federally-authorized site for free credit reports.
Note: You shouldn't need to provide a credit card number or payment to request your free credit reports.
Review each report carefully. Look for two things:
Start with information reported in the past two to three years, like incorrect payment history or balances. Recent information is generally the best place to focus when trying to strengthen your credit. Disputing an error is free, and each bureau has its own process.
Correcting an error can make a real difference in how your credit looks to lenders. If you see an account you don't recognize, visit IdentityTheft.gov for next steps.
Step: 2
Credit scores are calculated using models such as VantageScore or FICO. These models consider many of the same parts of your credit history, but they may group and weigh that information differently.
~35%
Paying on time is often the most important factor. Late payments can hurt your score, and on-time payments add up in a positive way over time
~30%
This includes credit utilization, or how much of your available credit you are actively using. A common rule of thumb is to keep balances well below your limits, often under 30% when you can.
~15%
A longer credit history can help, especially when older accounts stay in good standing. A track record with credit helps show stability.
~10%
Having different credit types (like credit cards and loans) can help show that you’re a responsible borrower.
Applying for several new credit accounts in a short time can temporarily lower your score.
The percentages shown reflect common examples of how FICO weighs credit factors. VantageScore and other scoring models may group and weigh these factors differently, and individual lenders may use additional criteria when making credit decisions.
Step: 3
Credit can change over time as new information is reported. Many people start by focusing on two areas that often matter most: paying on time and keeping balances manageable.
Autopay can help you avoid missed payments. Just make sure the payment amount and timing work with the money available in your account. If you can, pay more than the minimum.
Start by making at least the required payment on every account. If you have money available beyond those payments, consider putting it toward the card with the highest interest rate. Reducing higher-interest debt first can lower the interest you pay and allow more of your future payments to reduce the balance. Paying down credit card balances can also lower your overall credit utilization, which is the share of your available revolving credit you are using across your cards. Keeping utilization below 30% is a commonly accepted guideline, and lower is generally better when your budget allows. Scoring models may also consider utilization on individual cards. For example, a $450 balance on a card with a $500 limit represents 90% utilization on that card. The same balance on a card with a $3,000 limit represents 15% utilization. Your overall utilization compares the balances across all your cards with the total credit available across those cards.
Start with information reported during the past two to three years that could misrepresent your current credit picture, including incorrect late payments, balances, credit limits or account statuses. More recent errors are generally the most useful to address first. You can dispute genuine errors with the credit bureau for free. If you see an account or activity you do not recognize, treat it as a possible sign of identity theft and visit IdentityTheft.gov for next steps.
An older credit card may help your length of credit history and available credit. If the card has an annual fee, ask whether you can switch to a no-fee version before closing it. That may let you keep the same account open without impacting your length of history on your report.
If possible, give your credit profile time to strengthen before applying again. When you are ready, choose the product that fits your needs and submit one application at a time. Try not to apply repeatedly for products that may not match your current credit profile.
If you think you may miss a payment, contact your lender before the due date. Some lenders may offer options, depending on the account and circumstances, and reaching out early may give you more choices.
A simple budget can help you see which payment is at risk, where a small balance reduction can lower utilization and when it may be safe to apply again. If you can, set aside even a small amount each month so an unexpected expense is less likely to become a missed payment or a higher credit card balance. When possible, keep new charges at a level you can pay down without putting other bills at risk.
Step: 4
If you’re just starting out, or rebuilding, some tools can help. Others can be expensive or misleading. Before you choose one, make sure you understand the fees, what gets reported to the credit bureaus and how the product is supposed to help.
You can build credit by following the tips on this page. If you need extra help, you may want to consider a secured credit card, sometimes called a credit builder card. A secured card is backed by a refundable deposit that usually becomes your credit limit. If it reports to the credit bureaus and is used responsibly, it may help build payment history. Some services also report certain bill payments, such as rent, utilities or phone payments, to one or more credit bureaus. Before using any tool or service, check the cost, what gets reported, which bureaus receive the information and whether you can cancel. No service can guarantee a specific credit score outcome.
Be cautious of anyone who guarantees a specific score increase, promises to remove accurate information from your credit report, coaches you to dispute things you know are true or offers high-cost short-term loans as a quick fix. Legitimate credit help should not involve lying or disputing information you know is accurate. Federal law generally limits when credit repair companies can charge fees before providing services. When in doubt, consider starting with a nonprofit counselor from the list below or reading guidance from the CFPB or FTC.
Step: 5
You do not have to figure this out alone. Be cautious about paying anyone who promises to "fix" your credit, especially if they ask for money upfront. Many legitimate resources are free or low cost.
Best for: Nonprofit credit counselling and a full financial review. NFCC connects you with certified nonprofit credit counselors who can review your full financial picture and build a plan with you.
Best for: One-on-one financial guidance for women. Savvy Ladies offers a free financial helpline that matches women with volunteer financial professionals for guidance on credit, debt, budgeting and more.
Best for: Understanding credit reports, scores and dispute rights. The CFPB publishes guides that explain how credit reports and scores work, how to review your information and how to dispute information you believe is inaccurate.
Best for: Free credit reports from the three major bureaus. AnnualCreditReport.com is the official source for free credit reports from all three bureaus.
Best for: Accounts or activity you do not recognize. IdentityTheft.gov provides federal guidance on what to do if you see an account or activity you do not recognize on your credit report.
Best for: Spotting scams and understanding consumer protections. FTC Consumer Advice publishes practical guidance on credit repair, debt, identity theft and how to recognize misleading financial claims.
Get your free credit reports. Review them. Then choose the next action that fits your situation: set up autopay, lower utilization, dispute an error or contact a counselor. Small steps can help you understand your credit today and build more options over time.
Synchrony believes access to credit can positively change lives, and that belief extends to helping people understand and build credit over time. While Synchrony partners with some of the third-party organizations mentioned, it does not receive compensation for these referrals. This article is for educational purposes and is not financial advice.
Rebuilding credit is usually a months-long project, not a weekend one. A stronger score may lower things like interest rates, borrowing costs, and give you more options over time.
If you can, give your credit profile time to strengthen before applying for new credit. When applying for credit, the lender will submit what is called a “hard inquiry” on your credit report, which may temporarily lower your score. When you are ready, choose the product that fits your needs and submit one application at a time.
If you see an account or activity you do not recognize, review your report carefully and visit IdentityTheft.gov for next steps. You may also consider placing a credit freeze with the credit bureaus to help prevent new accounts from being opened in your name.
No. Checking your own credit report does not hurt your credit score. You can review your reports for free through AnnualCreditReport.com.
A regular review can help you spot errors, unfamiliar accounts or changes in your credit profile. Many people check at least once a year, and more often if they are preparing to apply for credit or working to build or rebuild credit.
If you think you may miss a payment, consider contacting the lender before the due date. Some lenders may offer options, depending on the account and circumstances, and reaching out early may give you more choices.
Maybe. An older no-fee credit card may help your length of credit history and available credit. But if the card has fees, a high balance or no longer fits your needs, compare the tradeoffs before closing it.
In some areas, yes. Utilization often updates when lenders report new balances to the credit bureaus, so paying down a balance may affect your score sooner than other changes. Payment history rebuilds more gradually, with each on-time month adding weight. Some negative marks may have less influence over time, even before they fall off your report.
Dispute the error with the credit bureau. If you see an account or activity you do not recognize, visit IdentityTheft.gov for next steps.
Credit utilization is how much of your available credit you are using. For example, a $450 balance on a card with a $500 limit is 90% utilization. Lower utilization is generally better, and a common guideline is to stay under 30% when possible.
A soft credit check usually happens when you check your own credit or when a lender reviews your credit for certain offers. It does not affect your score. A hard credit check usually happens when you apply for credit and may affect your score temporarily.
Start by checking your credit reports, paying every account on time and keeping balances low. If you have limited credit history, a secured credit card or another product that reports to the credit bureaus may help, as long as you understand the costs and terms.
Check the fees, whether the product reports to the credit bureaus, whether you can cancel and whether the company promises results that sound too certain. Be cautious of upfront fees, guaranteed score increases and promises to remove accurate information.
Start with incorrect information reported during the past two to three years because recent information is generally more useful to address first. If older information is inaccurate and still appears on your report, you can dispute it too. Its effect on your score may have diminished over time, but the outcome depends on the item and your broader credit profile. Accurate negative information generally cannot be removed simply because it is unfavorable, and most negative information can remain on a credit report for up to seven years. Look into any account or activity you do not recognize regardless of age because it could be a sign of identity theft.