Asked for the Secret to Good Credit, a Federal Agency Admitted There Isn’t One

The Consumer Financial Protection Bureau, the federal agency that handles consumer finance questions, keeps a page answering a question many people wonder about: how do you get and keep a good credit score? Its answer lets some air out of the mystery.¹

“There is no secret formula to building a strong credit score, but there are some guidelines that can help.”

That is a little anticlimactic, and also a relief. The guidelines on the page, last reviewed in December 2024, are things a person can start this week, and they cost nothing to follow.¹ The page is general consumer information, not personal financial advice. Here is what it recommends, with notes from FICO and the Federal Trade Commission, which give similar advice.

1. Pay on time, every time

The CFPB says most credit scores treat repayment history as the number one factor.¹ For FICO scores specifically, myFICO puts payment history at 35 percent of the score.²

Both suggest automatic payments or electronic reminders.¹² If you have already missed payments, the CFPB’s advice is simple: get current, then stay current.¹ The FTC also lists paying bills on time as a main focus.⁴

2. Keep balances well below your limits

Scoring models look at how close you are to being maxed out on your available credit. The CFPB says experts advise keeping your use at no more than 30 percent of your total limit.¹

That 30 percent figure is a rule of thumb, not a cliff. According to myFICO, its data does not show a score drop once use crosses 30 percent. It says lower is generally better, that staying under 10 percent can help build and keep a good FICO score, and it cautions against using none at all.³ myFICO also says this measure, called credit utilization, makes up 30 percent of a FICO score.² Two different 30s in one section is a coincidence, not a code.

A few related points from the CFPB:¹

• You do not need to carry a balance on a credit card to get a good score.
• Paying the full balance each month helps you get the best scores and keeps interest costs low.
• Closing cards and moving balances onto one card may hurt your score if it raises your overall utilization.

3. Give your history time to grow

A long record of on-time payments gives more information showing that you manage credit well, the CFPB says.¹ This is the one step that mostly rewards patience.

4. Apply only for credit you need

Applying for a lot of credit in a short stretch may make lenders think you are having financial setbacks, according to the CFPB.¹ The FTC similarly advises against opening several new accounts at once.⁴

5. Check your credit reports for errors

The CFPB advises disputing anything on your credit reports that looks wrong. It also suggests keeping an eye on old accounts you no longer use, watching for identity theft.¹ myFICO likewise recommends checking reports for errors.²

6. Starting from scratch or rebuilding

For people who are new to credit or working to improve it, the CFPB says products such as secured credit cards and credit-builder loans are worth considering.¹

Turning on a payment reminder is a fair place to begin.