What Moves Your Credit Score (and What Does Not)

A credit score is a number that predicts how likely you are to repay credit on time. It comes from the information in your credit report. You have many scores, not just one, because companies use different formulas, called scoring models. Most scores go from 300 to 850. A higher score usually means you pay less to borrow.

FICO scores are widely used. FICO says its scores look at five groups of information:

Other scoring models, such as VantageScore, weigh things a little differently. The same habits help with all of them: pay on time, keep balances low, and apply only for credit you need.

Your score uses only what is in your credit report. Your income is not part of it. A lender may still ask about your income and your job when you apply.

Payment history matters most. Lenders usually do not report a missed payment to the credit bureaus until it is at least 30 days past the due date. Some wait until 60 days. But a late fee can be charged soon after the due date. Once a late payment is reported, it can stay on your report for seven years.

For example, Denise in Bowie has a car payment due on the 15th. If she pays in full on the 22nd, she may owe a late fee, but the lender usually will not report the payment as late. If she pays 35 days after the due date, her report may show a 30-day late payment for seven years.

About to miss a payment? Do this

1. Call the lender before the due date. Ask about moving your due date, a short break from payments, or a hardship plan. Write down who you spoke to and what they said.
2. Pay what you can as soon as you can. Paying the full amount due before it is 30 days late often keeps the late payment off your report.
3. Set up automatic payments for at least the minimum on every card and loan.
4. If you cannot keep up with several bills, talk to a nonprofit credit counselor. See make a debt payoff plan and when your income drops.

Myth: Checking my own credit score lowers it.

Fact: When you check your own report or score, it is a soft inquiry. It does not affect your score. A hard inquiry happens when you apply for credit, and it can lower your score a little. When you shop for a car loan, mortgage or student loan, scoring models usually count several checks in a short time, often 14 to 45 days, as one.

Myth: A bigger income means a higher score.

Fact: Your income is not in your credit report, so it is not part of your score.

Myth: I should close old cards I do not use.

Fact: Closing a card can raise your utilization, as Joy's example shows. Keeping a card you have had for many years open usually helps, especially if it has no yearly fee.

Myth: I must carry a balance and pay interest to build credit.

Fact: Paying your full balance every month builds credit, may help your score, and costs you no interest.

Myth: Paying off a collection removes it from my report.

Fact: A paid collection can stay on your report for up to seven years, but it should show as paid. Paid medical collections are different: the credit bureaus say they do not include them.

The rules about medical bills changed several times. In January 2025, the CFPB finished a rule to keep most medical bills off credit reports. In July 2025, a federal court canceled that rule. So there is no federal ban today.

The three credit bureaus still follow their own policy:

• Paid medical collections are not included on credit reports.
• Medical collections that started under $500 are not included.
• An unpaid medical collection is not included until at least one year has passed.

Local laws add more protection. Maryland laws in effect since October 1, 2025 say medical providers and debt collectors may not report medical debt, and credit bureaus may not include it. A 2024 Virginia law says health care providers, and anyone collecting a medical debt, may not report it. DC passed a medical debt law in 2026 that will stop health care providers and debt collectors from reporting medical debt. It starts to apply only six months after the DC budget pays for it, so ask legal aid if it applies to you yet. In October 2025, the CFPB said it believes federal law overrides state rules like these, so courts may decide how far they reach.

• Look for medical collections on all three of your reports.
• Dispute any medical collection that is paid, that started under $500, or that is less than one year old.
• In Maryland, if a credit bureau does not remove medical debt that the law bans, you can complain to the Office of Financial Regulation at 410-230-6077.
• Ask the hospital or clinic about financial help before you pay a large bill. In Maryland, hospital patients have 240 days from the first bill to apply.