Skip to main content

How credit works

Updated this week

What is credit?

Credit lets you buy now and pay later. Use it smartly, and it opens doors—loans, housing, job opportunities, and more.

What affects your credit score?

There are 5 main factors:

  • Payment history – Pay on time.
    Tip: Use Smart Pay to avoid missed Atlas payments.

  • Amounts owed – Keep usage low.
    Tip: Stay under 30% of your credit limit when possible.

  • Length of credit history – The longer, the better.
    Tip: Keep your Atlas account open.

  • Credit mix – A variety of credit types helps.
    Tip: Consider rent reporting with Atlas to diversify.

  • New credit – Too many new accounts can hurt.

Why credit scores vary

  • Different data from creditors

  • Unique scoring models (FICO vs. VantageScore)

  • Timing differences or errors at each bureau

How to monitor your credit

  • Check for mistakes in personal info, accounts, or inquiries

  • Use the Credit tab in the Atlas app to view your Experian VantageScore 3.0

  • Use AnnualCreditReport.com for free yearly reports or tools like Credit Karma or Experian

How Atlas fits in

Atlas reports to all 3 credit bureaus as a line of credit. Depending on the app, you may see it listed under “revolving credit.”

FAQs

Q: Why does credit matter?

A: Good credit can save you money with better rates and higher limits. It also builds trust—many lenders, landlords, and even employers check your score.

Q: How often should I check my credit?

A: Monthly is best for monitoring, especially when building. At minimum, check once a year.

Q: Can errors really impact my score?

A: Yes—mistakes in accounts or personal info can hurt your credit. Always review your reports carefully.

Did this answer your question?