How Is Your Credit Score Calculated?

Your credit score is not a random number: it's built from five factors with different weights. Understanding each one lets you make decisions that improve it.

1. Payment history (35%)

It shows whether you pay your bills on time and how late you are when you don't. It's the heaviest factor. A late payment typically appears on your score about a month after it's missed.

2. Credit utilization (30%)

It compares how much you owe to your available credit. Keeping this usage below 30% signals that you don't rely too heavily on credit.

3. Length of credit history (15%)

The longer you've used credit responsibly, the better. That's why it pays to keep your oldest accounts open.

4. Types of accounts (10%)

Having a healthy mix of credit (cards, installment loans) shows you can manage different products.

5. New credit (10%)

Applying for a lot of credit in a short time can be seen as a risk signal. Apply for credit only when you need it.

If you focus on the two heaviest factors — paying on time and keeping your utilization low — you're addressing 65% of your score.