📊Credit Score Simulator
Simulate how different actions will affect your credit score. Get personalized recommendations to improve your score quickly.
Frequently Asked Questions
What is a credit score and how is it calculated?
A credit score (FICO score) is a 300-850 number representing your creditworthiness. It's calculated from 5 factors: (1) Payment History (35%) - on-time vs late payments. (2) Credit Utilization (30%) - how much of your available credit you're using. (3) Length of Credit History (15%) - age of oldest account and average age. (4) Credit Mix (10%) - variety of credit types (cards, loans, mortgage). (5) New Credit (10%) - recent applications and new accounts. Example: 750 score = 100% on-time payments, 10% utilization, 10-year credit history, 5 diverse accounts, 0 recent inquiries. Lenders use this to decide if you get approved and what interest rate you pay.
How much does paying off debt improve my credit score?
Paying off debt can boost your score 20-100+ points depending on current utilization. Impact by utilization level: 80% utilization → 30% = +50-80 points. 50% → 10% = +30-50 points. 30% → 10% = +15-30 points. The biggest gains come from crossing key thresholds: Above 50% = Very Bad. 30-50% = Bad. 10-30% = Good. Under 10% = Excellent. Example: $8,000 balance on $10,000 limit = 80% utilization (very bad). Pay off $6,000 → 20% utilization → score jumps 60+ points. Best strategy: Pay largest balance first if it brings utilization under 30%. Or pay all cards to under 30% if possible. Results appear within 1-2 billing cycles.
Will opening a new credit card hurt my credit score?
Opening a new card has mixed effects: SHORT-TERM NEGATIVES (1-6 months): Hard inquiry: -5 to -10 points. New account reduces average age: -5 to -15 points. Total immediate impact: -10 to -25 points. LONG-TERM POSITIVES (6+ months): Lower overall utilization: +10 to +40 points. More available credit: Positive. Diverse credit mix: +5 to +10 points. On-time payments add history: +10+ points. VERDICT: Worth it if you need lower utilization OR getting a 0% balance transfer. NOT worth it if you're about to apply for mortgage/car loan (wait until after). If score is 740+, opening a card is usually fine. If below 670, focus on paying down debt first.
How long does a late payment hurt my credit score?
Late payment impact by severity: 30 days late: -60 to -110 points (reported to credit bureaus). 60 days late: -70 to -135 points. 90+ days late: -80 to -150 points. Charge-off/collections: -100 to -150+ points. Impact depends on your starting score - higher scores drop more. Example: 780 score → 30-day late → drops to 670-720 (losing 60-110 points). 650 score → 30-day late → drops to 590-610 (losing 40-60 points). Recovery timeline: Stays on report for 7 years but impact fades: After 2 years: Minor impact. After 5 years: Minimal impact. If you're 1-2 days late, PAY IMMEDIATELY - most issuers don't report until 30 days. Call and ask for goodwill adjustment if it's your first time.
What's the fastest way to improve my credit score?
Top 5 fastest credit score boosts: (1) Pay down high balances to under 30% utilization - Impact: +20-80 points in 30-60 days. (2) Become authorized user on someone's old, perfect account - Impact: +10-50 points in 30 days. (3) Dispute errors on credit report (wrong late payments, incorrect balances) - Impact: Varies, but can be significant. (4) Pay twice per month to lower reported balance - Impact: +10-30 points. (5) Request credit limit increases (without hard inquiry) - Impact: +10-30 points. Example 90-day plan: Month 1: Pay all cards to under 30% (+40 points). Month 2: Become authorized user on parent's card (+20 points). Dispute old error (+15 points). Month 3: Request limit increases (+15 points). Total: +90 points in 90 days. Focus on utilization first - it's 30% of your score and changes fast.
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Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.