Credit Scores for Borrowers: What Lenders Actually Check and What You Can Change
When you apply for a loan, the lender reads two things about your credit: the report, which lists every account and how you paid it, and a score calculated from that report. This hub explains what goes into the score, which events weigh on it longest, and what you can realistically change before you apply. It sells nothing; when you are ready to see what your band can borrow, it hands you to the loan guides.
Key takeaways
- FICO Scores weigh payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%), per myFICO.
- Soft inquiries, including your own checks and prescreened offers, do not affect your scores, per the CFPB. Hard inquiries after you apply can.
- Most negative information can stay on a report for seven years and bankruptcies for up to ten, per the CFPB.
- You can request a free report from each of Equifax, Experian and TransUnion at AnnualCreditReport.com.
What goes into a credit score?
myFICO groups the data in your credit report into five categories. The weights show where your effort pays off most.
Figure: FICO's five scoring categories drawn to scale. Weights from myFICO, "How are FICO Scores Calculated?", accessed October 1, 2026.
| Factor (FICO weight) | What it means before a loan application | Guide |
|---|---|---|
| Payment history (35%) | Late payments, charge-offs and collections weigh most | What a charge-off is |
| Amounts owed (30%) | How much of your revolving limits you are using | Raise your score before a loan |
| Length of history (15%) | Older accounts help; thin files are harder to score | Credit builder loans |
| New credit (10%) | Recent hard inquiries and new accounts | Soft vs hard credit pull |
| Credit mix (10%) | Installment and revolving accounts together | Credit builder loans |
Which score bands do lenders use?
myFICO lists Poor (under 580), Fair (580 to 669), Good (670 to 739), Very Good (740 to 799) and Exceptional (800+). Lenders set their own cutoffs inside those bands. To see what each band can realistically borrow, go to personal loans by credit score.
Does checking your rate hurt your credit?
Not when it is a soft inquiry. The CFPB lists reviews by existing lenders, prescreening, employment screening and your own requests for your reports as soft inquiries that "will not affect your credit scores." Hard inquiries, "often inquiries by lenders after you apply for credit," can, because most models look at how recently and how often you apply. The practical rule: prequalify first, apply once. Details are in soft vs hard credit pull and do multiple loan inquiries count as one?.
Pull your reports before a lender does. The CFPB says you have the right to a free copy of your report each year from each of Equifax, Experian and TransUnion through AnnualCreditReport.com, and you may be able to view free reports more often online. Errors you find and dispute before applying cost nothing to fix compared with a declined application.
How long do negative items stay on your report?
The CFPB says a credit reporting company "generally can report most negative information for seven years," and bankruptcies "can stay on your report for up to ten years." Charge-offs and collections are negative items, so plan around them rather than expecting them to disappear before you apply. The pay for delete letter guide explains what a request to a collector can and cannot do.
If you were declined, the CFPB says the lender must send an adverse action notice giving the specific reasons, or telling you that you can learn them if you ask within 60 days. When the decision was based on your credit report, the lender must also give you the numerical score it used and the key factors that affected it. That is a free list of what to work on. See adverse action notice explained.
Credit score guides
How scores and inquiries work
- Soft vs hard credit pull for personal loans explained
- Do multiple personal loan inquiries count as one?
- Adverse action notice: why you were declined, decoded
Negative items
- What is a charge-off and can it come off your report?
- Pay for delete letter: what it can do (free template)
Building and rebuilding
- Raise your credit score before a loan: a 60-day plan
- Credit builder loans: how they work and who they help
- Rebuilding credit after Chapter 7, before you borrow
Where to go next
After the credit lesson, see what your band can borrow in personal loans by credit score. If collections or charge-offs are part of a larger debt problem, the debt relief hub compares the options. Back to the Loans Generator home page.
Common questions
What credit score do lenders look at?
Lenders use credit scores such as the FICO Score, which myFICO groups into bands from Poor (under 580) to Exceptional (800+), and they read the full report as well. If you are declined based on your report, the CFPB says the lender must tell you the score it used.
What hurts a credit score the most?
By FICO's weights, payment history (35%) and amounts owed (30%) together make up about two-thirds of the score. Missed payments and high balances on revolving accounts move it most.
Do soft inquiries affect my score?
No. The CFPB says soft inquiries, including your own requests for your reports and prescreened offers, do not affect your credit scores.
How long does a late payment stay on my report?
Most negative information can be reported for seven years, per the CFPB. Bankruptcies can stay for up to ten years.
How can I see my credit report for free?
Request it through AnnualCreditReport.com, which gives you a free copy each year from each of the three nationwide credit reporting companies, per the CFPB, and you may be able to view free reports more often online.
Sources
- myFICO, "How are FICO Scores Calculated?", accessed October 1, 2026.
- myFICO, "What is a Credit Score?", accessed October 1, 2026.
- Consumer Financial Protection Bureau, "What is a credit inquiry?", accessed October 1, 2026.
- Consumer Financial Protection Bureau, "How long does information stay on my credit report?", accessed October 1, 2026.
- Consumer Financial Protection Bureau, "What can I do if my credit application was denied because of my credit report?", accessed October 1, 2026.
- Consumer Financial Protection Bureau, "How do I get a free copy of my credit reports?", accessed October 1, 2026.
This page is general information about credit reporting and scoring, not legal or financial advice. Scoring models differ, and no action can promise a specific score change or removal of accurate information. Loans Generator is not a loan provider or broker and does not offer credit repair services.