What Affects Your Credit Score? The 5 Factors
Your FICO score is built from five factors: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%). Payment history and how much you owe together drive about two-thirds of your score, so they're where to focus.
1. Payment history — 35%
Whether you pay on time is the single biggest factor. One payment that's 30+ days late and reported can drop your score noticeably and stay on your report for up to seven years. Paying every bill on time, every time, is the foundation.
2. Amounts owed (credit utilization) — 30%
This is mostly your credit utilization — the percentage of your available revolving credit you're using. Lower is better; keeping utilization in the single digits to low double digits helps most. Because issuers report your statement balance, paying down before the statement closes can lower the utilization that gets reported.
3. Length of credit history — 15%
Older accounts help. This is why closing your oldest card can backfire, and why becoming an authorized user on a long-standing account can help a thin file.
4. New credit — 10%
Opening several accounts in a short time, and the hard inquiries that come with them, can ding your score temporarily. Checking your own score never does — only applications do.
5. Credit mix — 10%
A blend of revolving credit (cards) and installment loans (auto, student, personal) shows you can manage different types. It's the smallest factor — never take on debt you don't need just for "mix."
Watching the factors move
CreditVana's report card shows which of these factors are helping and hurting you across all three bureaus, refreshed every 14 days, so you can see the effect of paying down a balance or letting an account age.
Frequently asked questions
What is the biggest factor in your credit score?
Payment history is the biggest factor at about 35% of your FICO score. Paying every bill on time is the most important habit for your credit.
What hurts your credit score the most?
Missed or late payments and high credit utilization hurt the most, since payment history (35%) and amounts owed (30%) together drive about two-thirds of your score.
What credit utilization is best?
Lower is better. Keeping your reported balances in the single digits to low double digits as a percentage of your limits generally helps your score most.