Understanding Your Credit Score Before You Apply

Before you apply for any credit card, it pays to understand the number issuers will check. In the US that's usually a FICO or VantageScore; in Canada, an Equifax or TransUnion score. The ranges differ, but the ingredients are broadly the same.

What drives the score

• Payment history — the biggest factor; on-time payments help, missed payments hurt for years.
• Credit utilization — how much of your available credit you're using; lower is better.
• Length of history — older accounts help, so think twice before closing your oldest card.
• Credit mix & new inquiries — a variety of account types helps a little; several new applications in a short span can hurt.

Match the card to your range

Each card lists a typical credit-score range. Applying for a card aimed well above your score usually just costs you a hard inquiry. Many banks and free services now show your score, so check it first and apply where your odds are realistic.

Check for free

You're entitled to free credit reports (AnnualCreditReport.com in the US; Equifax/TransUnion in Canada). Review them for errors before applying — mistakes are common and free to dispute.

Informational only — not financial advice.