FICO® Score Factors: How Your Credit Score Is Calculated
CORE INSIGHTS
- The Big Two: Payment History (35%) and Amounts Owed (30%) make up nearly two-thirds of your score. Focus here first.
- Don’t Close Old Cards: Length of Credit History (15%) matters. Keeping old accounts open helps your score age like fine wine.
- Mix It Up: Lenders like to see a mix of credit types (credit cards, auto loans, mortgages) rather than just one type.
In the United States, a FICO® Score is one of the most common tools lenders use to assess creditworthiness. Understanding how the score is formed can help you make informed borrowing and financial decisions.
“You don’t need to be perfect. Focusing on just two things—paying on time and keeping balances low—solves 65% of the credit puzzle.”
The Five Components of a FICO® Score
| Factor | Weight | What It Measures |
|---|---|---|
| Payment History | 35% | Track record of on-time payments across credit accounts. |
| Amounts Owed | 30% | How much credit you are using compared to your total available credit. |
| Length of Credit History | 15% | The age of your oldest and newest accounts, and average account age. |
| New Credit | 10% | Number of recently opened accounts and hard inquiries. |
| Credit Mix | 10% | Diversity of accounts (e.g., credit cards, loans, mortgages). |
Visual Breakdown
The chart below provides a visual breakdown of how each factor contributes to your overall FICO® Score.
Smart Credit Management Tips
1
Always Pay on Time
Since payment history is the largest factor, using automatic payments or reminders can help prevent missed due dates.
Since payment history is the largest factor, using automatic payments or reminders can help prevent missed due dates.
2
Keep Credit Utilization Low
Many financial professionals suggest keeping balances below 30% of your available credit. (e.g., if your limit is $10k, keep balance under $3k).
Many financial professionals suggest keeping balances below 30% of your available credit. (e.g., if your limit is $10k, keep balance under $3k).
3
Be Mindful When Opening New Accounts
Too many new accounts at once can temporarily lower your score by increasing credit risk (New Credit) and reducing your average account age.
Too many new accounts at once can temporarily lower your score by increasing credit risk (New Credit) and reducing your average account age.
Frequently Asked Questions
Q. What is the most important factor in a FICO® Score?
Payment History is the most influential factor, accounting for 35% of the FICO® Score calculation. Consistently making on-time payments helps maintain a strong credit profile.
Q. Does checking my own credit score lower it?
No. Checking your own credit score is considered a soft inquiry and does not affect your credit score. Only hard inquiries—typically from lenders during new credit applications—may temporarily reduce your score.
Disclaimer: FICO® is a registered trademark of the Fair Isaac Corporation. Credit scoring models vary by lender and bureau. This content is for educational purposes only and should not be considered financial advice.