Why Is My Credit Score Staying the Same?

Your credit score is often the determining factor for loan, credit card and lease approvals. If your credit score is never moving, that's a sign that you are not building your credit correctly. To see changes to your credit score, you'll need to either establish credit or begin using credit more frequently.

Credit Score Components

FICO credit scores are broken down into five components, all of which determine whether your credit score increases or decreases. Your FICO score is what financial lenders typically look at when considering you for a loan. According to Myfico.com, payment history makes up 35 percent of your score, amount owed makes up 30 percent, length of credit history makes up 15 percent; new credit and types of credit used each make up 10 percent.

The amount owed means the total amount of money you owe and the percent of available credit relative to the percentage of debt. Charging 90 percent of your maximum credit will have a negative impact on your score.

New credit means how often you open up new credit accounts; opening too many too quickly will have a negative effect. Types of credit refers to the varieties of credit you use. Having several different lines of credit will adversely affect your score if you don't have a lengthy credit history, but could positively affect it if you have a long credit history.

Credit History

To see any change to your credit score, you must have a history of credit. Your credit history can include credit cards, mortgage payments, rent payments and loan payments. Paying a one-time doctor fee or a $200 grocery bill with your grocery store card doesn't establish any credit. You also won't see any change to your credit score when you first begin establishing credit. It takes time, usually three to six months, to see any change to your credit score.

Credit Reporting

Although you may be paying a loan or credit card, that doesn't mean the lender has to report your timely payments to all three credit bureaus. The three main credit bureaus are TransUnion, Experian and Equifax. If the lender doesn't report your payments, or only reports to TransUnion and Equifax, your credit score will change only where reported. It's important to ask if the lender reports to all three credit bureaus. Most lenders pull your credit score from one of the three major bureaus; if they pull your score from one that your lender doesn't report to, then you may be denied the loan or credit card.

Good Credit Decisions

If you make a good decision and then poor decision regarding your credit, your score is going to remain the same; it won't increase or decrease very much. Good decisions will eventually increase your credit score. Do not close credit card accounts, which can hurt your score. It's better to pay off the account and leave it open. Do make timely payments, which are crucial to your credit history and make up the largest portion of your credit score. Don't open too many accounts too quickly, which can lower your score.