Credit Score Factors
Learn what makes up your credit score and how to improve each factor.
How Your Credit Report Should Look
Your credit score is calculated by three major bureaus. Here are the ideal scores to aim for.
Equifax
TransUnion
Experian
Ideal Credit Report Metrics
These are the optimal numbers to maintain for a healthy credit profile.
Payment History
Credit Utilization
Derogatory Marks
Age of Credit History
Total Accounts
Hard Inquiries
The 5 Factors That Determine Your Score
Understanding these factors is the first step to taking control of your credit.
Payment History
35% of your score
This shows whether you pay your bills on time. Late or missed payments hurt your credit the most.
Tips to Improve
- Set up automatic payments to never miss a due date
- Pay at least the minimum amount on time, every time
- If you miss a payment, catch up as soon as possible
Credit Utilization
30% of your score
This is how much of your available credit you're using. Using too much of your limit can lower your score—even if you pay on time.
Tips to Improve
- Keep your credit card balances below 30% of your limit
- Pay down balances before your statement closing date
- Consider requesting a credit limit increase
Credit History
15% of your score
This reflects how long you've been using credit. The longer your accounts have been open, the better it looks to lenders.
Tips to Improve
- Keep old credit accounts open, even if you don't use them
- Don't close your oldest credit card
- Be patient—credit history takes time to build
Types of Credit
10% of your score
This looks at the different kinds of credit you have, like credit cards and loans. Having a mix shows you can handle different financial responsibilities.
Tips to Improve
- Consider having a mix of credit cards and installment loans
- Don't open accounts just to have more types
- Focus on what you need and can manage responsibly
New Credit Inquiries
10% of your score
These happen when you apply for new credit. Too many applications in a short time can lower your score.
Tips to Improve
- Only apply for credit when you really need it
- Rate shopping for loans within 14-45 days counts as one inquiry
- Avoid applying for multiple credit cards at once
Ready to ImproveYour Credit?
Join our program and get personalized guidance to address each of these factors and improve your credit score.