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    Credit Score

    What Affects Your Credit Score? All 5 Factors Explained

    7 min readEducational GuideLast updated: February 2025

    FICO Score Factor Weights

    Payment History (35%)35%
    Amounts Owed / Utilization (30%)30%
    Length of Credit History (15%)15%
    Credit Mix (10%)10%
    New Credit / Inquiries (10%)10%

    Factor 1: Payment History (35%)

    The single most important factor. This tracks whether you pay your bills on time across all credit accounts - credit cards, mortgages, auto loans, student loans, and even some utilities.

    ActionImpactHow Long It Stays
    On-time payment (every month)Positive7 years (positive)
    30-day late payment-60 to -110 points7 years from delinquency
    60-day late payment-80 to -130 points7 years from delinquency
    90+ day late / default-100 to -150 points7 years from delinquency
    Collection accountSevere7 years from original delinquency
    Bankruptcy (Chapter 7)Devastating10 years
    ForeclosureSevere7 years

    Protect Payment History Above All Else

    If you can only do one thing, never miss a payment. Set up autopay for the minimum on every account. You can always pay more later, but you can't undo a missed payment.

    Factor 2: Amounts Owed / Utilization (30%)

    This measures how much of your available revolving credit you're using. It's calculated both per-card and across all cards combined. This factor is the most rapidly changeable - unlike payment history, it has no memory and resets each month.

    Read our comprehensive credit utilization strategy guide for detailed tactics.

    Factor 3: Length of Credit History (15%)

    This considers three sub-factors: the age of your oldest account, the age of your newest account, and the average age of all accounts. Longer history means a more established track record.

    Why Closing Old Cards Hurts

    When you close a credit card, it eventually falls off your report (after ~10 years for positive accounts). This reduces your average account age and available credit - both negative effects.

    Factor 4: Credit Mix (10%)

    Having a diverse portfolio of credit types demonstrates you can manage different credit responsibly. Ideally, your profile includes both revolving credit (credit cards, lines of credit) and installment loans (mortgage, auto, student, personal).

    Factor 5: New Credit / Inquiries (10%)

    When you apply for new credit, the lender runs a "hard inquiry" that temporarily reduces your score by 5–10 points. Multiple applications in a short period can signal financial stress.

    Rate Shopping Exception

    Multiple hard inquiries for the same type of loan (mortgage, auto) within 14–45 days are treated as a single inquiry by FICO. Rate shop aggressively within that window.

    What Does NOT Affect Your Score

    FactorAffects Score?
    Income or wealthNo
    Employment statusNo
    Checking or savings account balancesNo
    Soft inquiries (own credit checks, pre-approvals)No
    Age or demographic informationNo (illegal)
    Debit card transactionsNo
    Rent payments (generally)No (unless added via reporting service)

    Now that you understand all five factors, see how they interact in our score improvement guide and model changes with the credit score simulator.

    Frequently Asked Questions

    Does checking my credit score affect it?

    No. Checking your own score is a 'soft inquiry' that has zero impact. Only 'hard inquiries' from lenders when you apply for credit can temporarily lower your score.

    Does income affect your credit score?

    No. Your income, savings, net worth, and employment status do not directly factor into your credit score. Scores are based entirely on credit history and usage patterns.

    How long until negative information stops affecting my score?

    Most negative items lose significant impact after 2–3 years and are fully removed after 7 years. Bankruptcies stay for 7–10 years.

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