1. Payment History (35%)

Your payment history is the most important factor. Lenders want to see that you pay your bills on time and in full.

• On-time payments build your score quickly
• Late payments stay on your report for 7 years
• Even one missed payment can significantly drop your score

Pay every bill on time — even the minimum — to protect this category.

2. Credit Utilization (30%)

Utilization is the percentage of your total credit you're currently using. Lower is better.

• Keep utilization under 30% for a healthy score
• Under 10% is ideal
• High balances signal risk to lenders

Paying down balances or raising your credit limit helps this score component.

3. Length of Credit History (15%)

The longer your accounts have been open, the better. This includes average account age and your oldest account.

• Keep old accounts open (if they have no fees)
• Avoid opening many accounts at once
• New credit lowers your average account age

4. Credit Mix (10%)

Lenders prefer seeing a healthy mix of credit types.

• Credit cards
• Auto loans
• Student loans
• Personal loans
• Mortgage

You don’t need all of these — just a balanced variety over time.

5. New Credit & Inquiries (10%)

Hard inquiries occur when lenders check your credit for a loan or new credit card.

• Each hard inquiry can drop your score slightly
• Multiple inquiries in a short time looks risky
• Shopping for a mortgage/auto loan within 30 days usually counts as one inquiry