Credit scores can feel like a mystery but they don’t have to be. Whether you’re launching your side hustle, getting ready for your first loan, or just curious how lenders view you, understanding how credit scores work is your first step to financial freedom.
In this guide, we’ll break down what credit scores are, what affects them, and how the Hustle Card makes it easier than ever to start building credit—no hard inquiries, no stress.
Keep reading to learn more about how credit scores work and how to better understand creditworthiness.
Introduction to Credit Scores
What is a Credit Score?
A credit score is a three-digit number, usually ranging from 300 to 850, that tells lenders how trustworthy you are when it comes to repaying borrowed money. The higher your score, the more creditworthy you appear.
Why Credit Scores Matter
Your credit score can affect nearly every aspect of your financial life:
- Whether you get approved for a credit card or loan
- The interest rate you’ll pay
- Your ability to rent an apartment or finance a car
For entrepreneurs, freelancers, and hustlers, a good credit score can mean more financial tools to grow your dreams.
The 5 Key Factors That Influence Your Credit Score
Credit scores aren’t random. They’re built from specific behaviors. Here’s what goes into the mix, according to Vantage 4.0:
1. Payment History - 41%
This is the biggest piece of the puzzle. Lenders want to know: Do you pay your bills on time? Even one late payment can drag your score down.
2. Credit Utilization - 20%
This measures how much of your available credit you're using. Keeping your balances below 30% of your credit limit shows you’re in control.
3. Length of Credit History and Mix of Credit - 20%
The longer you’ve been using credit responsibly, the better. That’s why it’s smart to start building early, even with a low-limit card or a secured card.
A variety of account types—like a credit card and an auto loan—shows lenders you can juggle different responsibilities simultaneously.
4. New Credit Inquiries - 11%
Applying for too many new accounts at once can make you look risky. That’s why cards like the Hustle Card, which don’t require a hard credit check, are so valuable.
5. Balance - 6%
This refers to the total amount of recently reported balances (current and delinquent).
6. Available Credit - 2%
This refers to the amount of credit available.
You can read more about these percentages from Vantage 4.0 here.
Who Creates and Tracks Credit Scores?
Credit Bureaus: Experian, Equifax, and TransUnion
These three major bureaus collect and report your credit data. Lenders submit your account activity, which then gets used to calculate your scores.
FICO vs. VantageScore: What’s the Difference?
- FICO is the most widely used scoring model, especially for loans.
- VantageScore is gaining traction and is often used for free credit monitoring services.
Both use similar factors, but your score may vary slightly between the two.
Example Scenarios That Affect Credit
- Paying your credit card on time each month? Score goes up.
- Maxing out your limit and missing payments? Score takes a hit.
- Opening a credit builder card and keeping balance low? A smart move for building history.
Conclusion: Your Score, Your Power
Your credit score is more than a number—it’s a tool. It opens doors, saves you money, and empowers your hustle. With the Hustle Card, you’ve got a trusted partner for that journey.
So whether you're just starting out or making a comeback, you’ve got what it takes. Build your credit the smart way!
On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. We report payment history to Experian, Equifax and TransUnion. Credit impact may vary based on a number of factors including your activity with other financial services organizations.
The Hustle Card and related banking services are provided by Cross River Bank Member FDIC. Upward Financial Inc. is a technology services provider and the administrator of the Hustle Card program. Deposits FDIC-insured up to $250,000 through Cross River Bank. Line of credit is not a deposit product. Cards may be used everywhere Mastercard is accepted.