1. Payment History (35%)

Your payment history is the single biggest factor affecting your credit score. Paying accounts on time consistently helps build trust with lenders, while late payments, collections, charge-offs, and bankruptcies can significantly lower your score.

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2. Credit Utilization (30%)

This measures how much of your available revolving credit you’re currently using. Lower utilization generally leads to stronger scores. Most experts recommend staying below 30%, while below 10% is often ideal for top-tier scoring.

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3. Length of Credit History (15%)

The longer your credit history, the better. This factor considers the age of your oldest account, your newest account, and the average age of all accounts combined. Older, well-managed accounts help demonstrate long-term stability.

 

4. Credit Mix (10%)

Lenders like to see that you can responsibly manage different types of credit, such as credit cards, auto loans, mortgages, and installment loans. A healthy mix can positively impact your score over time.

 

5. New Credit (10%)

Applying for multiple new accounts within a short period can temporarily lower your score. This category includes hard inquiries and newly opened accounts. While rate-shopping for certain loans is often grouped together, excessive applications may raise risk concerns with lenders.