Skip to Content

Building & Repairing Credit Score

Building & Repairing Credit Score


A credit score is a number that is used by financial institutions and/or credit card companies to determine the level of risk for a person when issuing a loan or credit card. A person’s credit score may influence the limit of credit available to them, as well as the term, length, and interest rate of a loan.

One of the first items that you (or a potential creditor) will see when looking at a credit report is your credit score: a number between 350 to 850. Generally, credit ratings are referred to on a scale, anywhere from excellent credit down to poor credit. As of 2020, “The average credit score in the US is 711, according to credit reporting company Experian, calculated using the FICO scoring model.” (

The lower end of the credit score scale is 550 and lower. When you have a credit score on the lower end, there is a greater chance that you could be denied a loan or credit card, and it takes time, patience, and responsibility in order to improve that score up the scale.

Next, in the middle of the scale, you have 550-720. If your score is sitting in the middle of the credit score scale, you may be approved for a loan or credit card. Typically, in this range, you may pay more money due to a higher interest rate.

Finally, the higher end of the credit scale is 720 and above. If you have a score of 720 or more you’re usually in great shape when applying for credit and can save a lot of money over the life of a loan on interest paid. In the terms of a grading scale, people with this high of a score are getting A’s and B’s. Most people strive for that credit grade! (Note: Having a high credit score does not automatically qualify you for a loan – there is a multitude of factors that creditors and lenders look at in addition to scoring, such as income, debt-to-income ratio, dollar amount requested, and much more.)

In order to have any of those numbers on the credit score scale, there are a number of factors to consider. Credit scores can be broken down into percentages into 5 categories.

  • 35% Payment Historypaying your bills on time increases your score, where any late payment can negatively impact your score.
  • 30% Capacitycapacity can be explained as the total amount of credit lines/limits that you have in the form of credit cards and lines of credit. (Take all of the limits of your credit cards and lines of credit, and add them up for your total capacity.) If you get close to maxing out all your lines of credit, it lowers your score.
  • 15% Length of Creditthis is the total amount of time you’ve been using ‘credit’ during your lifetime. Responsible credit habits over a long period of time raise your score.
  • 10% New Credit – Opening new lines of credit have a minimal, short-term negative effect on your score, as it’s seen as a need to take on additional credit, so don’t open a whole bunch at once! As you use new credit over time, it will help support your overall use of credit and adds to other areas of the credit mix.
  • 10% Mix of Credita mix of credit means having both revolving credits such as credit cards or a line of credit along with installment loans such as an auto loan, mortgage, or personal loan. Having a variety of credit types demonstrates to potential creditors that you are responsible for your finances.  


Building Credit Score

If you’ve just started building your credit it could take about 6-8 months of positive activity and good payment history reported to begin establishing credit. Generally, you can expect to quickly establish a mid-range credit score. You typically won’t see drastic changes month to month.

Want to learn more about building your credit score? Start with our BANZAI! Building Credit Coach session!


Repairing Credit Score

Repairing a credit score after making (and hopefully learning from) mistakes can be a bit of a task. But, we have good news to provide some hope…we see members with poor scores improve to good scores, and all the way up to great credit scores all the time!

Start with our BANZAI! Repairing Credit Coach Session. If you need additional help, we’re always happy to help you go over your credit report and examine how we can help work with you to get you back on track.



To help you understand and mold your credit score to be the best it can be, we’ve put together a helpful ‘credit score toolkit’ with BANZAI! financial education articles and interactive coach sessions.


Review Your Credit Annually

It’s always a great idea to check your credit regularly. You have the right to view one free credit report a year from each of the three major credit bureaus. The best way to get started with that is by reviewing your credit at If you notice any errors, issues, or items that you are not sure are yours, you can dispute the information with the credit bureau that displays incorrect information. Correcting errors can be a quick way to improve your credit profile.



  1. -,range%20of%20300%20to%20850.



While we hope you find this content useful, it is only intended to serve as a starting point. Your next step is to speak with a qualified, licensed professional who can provide advice tailored to your individual circumstances. Nothing in this article, nor in any associated resources, should be construed as financial or legal advice. Furthermore, while we have made good faith efforts to ensure that the information presented was correct as of the date the content was prepared, we are unable to guarantee that it remains accurate today.

CSE does not make any warranties or representations as to the accuracy, applicability, completeness, or suitability for any particular purpose of the information contained herein. CSE expressly disclaims any liability arising from the use or misuse of these materials and, by visiting this site, you agree to release CSE from any such liability. Do not rely upon the information provided in this content when making decisions regarding financial or legal matters without first consulting with a qualified, licensed professional.


Denotes required fields

Aa Aa Aa