FICO Score Factors
| Factor | Weight | What It Means |
|---|
| Payment History | 35% | Pay on time, every time. One 30-day late can drop 100+ points. |
| Credit Utilization | 30% | Keep balances under 30% of limit — under 10% is ideal |
| Credit Age | 15% | Average age of accounts — longer is better. Don't close old cards. |
| Credit Mix | 10% | Revolving (cards) + installment (loans) — variety helps |
| New Credit | 10% | Hard inquiries stay 2 years — too many in short time is a red flag |
Score Ranges
| Range | Rating |
|---|
| 800-850 | Exceptional |
| 740-799 | Very Good |
| 670-739 | Good |
| 580-669 | Fair |
| 300-579 | Poor |
How to Improve Your Score
| Action | Impact |
|---|
| Pay down credit card balances | Fastest impact — utilization updates monthly |
| Set up autopay for minimums | Never miss a payment again |
| Become authorized user | Piggyback on someone's good, old account |
| Dispute errors | 1 in 5 credit reports has errors — check annualcreditreport.com |
Common Myths
| Myth | Reality |
|---|
| Checking your own score hurts it | False — soft inquiries don't affect your score |
| Closing old cards helps | False — it lowers your average credit age and total available credit |
| You need to carry a balance | False — pay in full every month. Interest does NOT build credit. |
Pro Tip: Credit utilization is the fastest lever you can pull. If your score needs a quick boost, pay down cards to under 10% utilization BEFORE the statement closing date — that's when most issuers report to bureaus.