How Is Your Credit Score Calculated?

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The FICO scoring model is based on five main factors:

  1. Payment History (35%)
    Do you pay your bills on time? Late or missed payments hurt your score the most.

  2. Credit Utilization (30%)
    This is the percentage of credit you’re using compared to your total limit. Experts recommend staying below 30%.

  3. Length of Credit History (15%)
    The longer you’ve had credit accounts open, the better. Older accounts show stability.

  4. New Credit (10%)
    Opening too many accounts in a short time can lower your score.

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