The 5 Factors That Make Up Your Credit Score (And How to Improve Each)

Your credit score isn't just a random number—it's calculated using a specific formula. Understanding these factors is the first step to improving your score.

1. Payment History (35%)

This is the biggest factor. Even one late payment can drop your score by 100+ points. Set up autopay to never miss a payment again.

2. Credit Utilization (30%)

This is how much of your available credit you're using. Keep it below 30%, ideally below 10%. If you have a ,000 limit, try to keep your balance under ,000.

3. Length of Credit History (15%)

Older accounts help your score. Don't close old credit cards, even if you don't use them.

4. Credit Mix (10%)

Having different types of credit (credit cards, auto loans, mortgage) shows you can handle various types of debt responsibly.

5. New Credit Inquiries (10%)

Each hard inquiry can lower your score by 5-10 points. Avoid applying for multiple credit cards at once.