Your FICO score is calculated from five factors, each weighted differently. Understanding the weights tells you exactly where to focus your energy — and which actions will move the needle fastest.
Factor 1: Payment History (35%)
The single biggest factor. One missed payment can drop your score 60–80 points. One year of on-time payments can add 20–40 points. If you have late payments, dispute them or send goodwill letters. Going forward, set up autopay for every account — even the minimum.
Factor 2: Credit Utilization (30%)
Utilization is the ratio of your credit card balances to your credit limits. Under 30% is good. Under 10% is excellent. This is the fastest factor to improve — pay down balances and your score can jump 20–50 points within 30 days (after the next billing cycle reports).
Pro tip: Ask your credit card companies for a credit limit increase. If they approve it without a hard inquiry, your utilization drops instantly.
Factor 3: Length of Credit History (15%)
The average age of your accounts matters. Don't close old credit cards — even ones you don't use. A card you've had for 10 years is worth keeping open, even with a $0 balance. Closing it shortens your average account age and can drop your score 10–20 points.
Factor 4: New Credit (10%)
Each hard inquiry (when a lender checks your credit for a new application) can drop your score 5–10 points temporarily. Multiple inquiries in a short window look risky. Avoid applying for new credit while you're actively repairing your score.
Factor 5: Credit Mix (10%)
Lenders like to see that you can manage different types of credit — credit cards (revolving), auto loans, mortgages (installment). If you only have credit cards, adding a small installment loan (like a credit-builder loan) can improve this factor.
The Priority Order
For the fastest improvement: (1) bring all accounts current, (2) pay down credit card balances below 30%, (3) dispute inaccurate negative items, (4) avoid new applications. In 90–180 days, most people see significant improvement.
