The FICO Score Formula
FICO calculates your credit score using five distinct factors, each weighted differently. Understanding how much each factor matters helps you focus your efforts where they'll have the biggest impact.
Factor 1: Payment History (35%)
This is the single most important factor. Every on-time payment builds your score; every late payment damages it. Even one 30-day late payment can drop your score 60–110 points. Set up autopay for at least the minimum payment on every account.
Factor 2: Credit Utilization (30%)
Utilization is your total credit card balance divided by your total credit limit. For example, if you have $3,000 in balances and $10,000 in limits, your utilization is 30%. Keep it under 30% — ideally under 10% — for the best scores. Learn more in our credit utilization guide.
Factor 3: Length of Credit History (15%)
Older accounts help your score. This includes the age of your oldest account, your newest account, and the average age of all accounts. Avoid closing old cards even if you don't use them — it reduces your average account age.
Factor 4: Credit Mix (10%)
Having different types of credit — revolving (credit cards) and installment (auto loans, student loans, mortgages) — shows you can manage multiple credit types responsibly. You don't need to open new accounts just for mix, but having variety helps.
Factor 5: New Credit (10%)
Every time you apply for credit, the lender does a hard inquiry that temporarily lowers your score 5–10 points. Multiple hard inquiries in a short period (outside of rate shopping) hurt more. Only apply for new credit when necessary.
Action Plan
Focus on payment history first — it's worth 35% of your score. Then tackle utilization (30%), which you can often improve within days of paying down balances. See our guide to raising your score 100 points for a complete timeline.