Required

What Five Factors Make Up Your FICO Credit Score?

Written by:
David Kirsch
Edited by:
Kristin Marino verified

credit historyWhen it comes to the factors of credit scores, the FICO credit scoring model is the model used by the majority of banks and by those that grant credit. The score range for FICO is from 300 to 850, with a higher the score, the better.

A consumer has three FICO scores, with one coming from each credit report provided by the three major credit bureaus. These three bureaus are TransUnion, Experian, and Equifax. Each of these bureaus will report a slightly different score, but all should give a good representation of your credit history.

Below is a breakdown of the five FICO credit score factors.

Payment History – 35 percent

Your payment history is the most important Fico credit score factor. This section focuses on whether or not you can be trusted to repay money that is lent to you.

Paying your bills late has a negative effect on your score. With the FICO credit scoring model, the number of days you are late to pay your bills will determine how much of an impact it will have on your score. If you were 30 days late, the negative impact would be less than if you were 60 or 90 days late.

If you have any collections, debt settlements, bankruptcies, charge offs, liens, foreclosures, or judgments against you, these will damage your credit score worse than a simple late payment would.

In all situations, the older the event, the less likely it will impact your FICO credit score. Your best bet is to have as good of a payment history as possible.

Amounts Owed / Credit Utilization – 30 percent

The amount of available credit you are currently using is the second most important FICO credit score factor.

The FICO credit scoring model views borrowers who max out their credit cards or are close to credit card limits as borrowers who may not be able to handle their debt responsibly. Maintaining a credit utilization ratio of 10 to 20 percent or less is something to strive for, on the overall level of debt as well as each individual card.

Owing some money is seen as better than owing nothing, though, since lenders want to see that when you borrow money, you are responsible in paying it back. Having a mix of multiple types of credit is also beneficial.

Length of Credit History – 15 percent

How long you have been using credit is another FICO credit score factor. The FICO credit scoring model takes into account how long all of your credit accounts have been established, such as the age of your newest account, oldest account, and average age of all accounts.

Those without a long credit history can improve their credit score by continuing to use their credit, while those with a long history should maintain long-standing accounts.

Types of Credit Used – 10 percent

Something beneficial to your FICO credit score is having a history of managing all different types of credit.

Some different types of credit include store accounts, credit cards, installment loans, and mortgages.

Showing that you are able to repay debt in a variety of categories will usually mean that you represent less risk for lenders.

New Credit – 10 percent

How many new accounts you have applied for recently will impact your FICO credit score. Borrowers should be weary of opening too many credit lines at once (even if you don’t have a long credit history), as this behavior may suggest the borrower may be in financial trouble and needs access to a lot of credit.

The number of recent inquiries a lender has made to view your credit report and the length of time it has been since this inquiry was made can also impact your credit, though the impact is small.

Get matched to your perfect loan and level up your money game.
Find My Loan
Popular Posts

Related Content

How to Raise Your Credit Score From Fair to Good
Credit | September 23, 2019
You can reap huge benefits when you raise your credit score from fair to good, and we'll show you how to do that right here.
Credit Repair: How to Use a Personal Loan to Raise Your Credit Score
Credit | June 17, 2019
Need a personal loan for credit repair? Learn how to find the best options, negotiate better terms, and improve your credit score with our helpful tips.
What is Credit Mix? Get to Know Your Credit Score
Credit | January 18, 2022
Your open credit accounts make up your credit mix and play a role in determining your credit score. Find out what determines your credit mix.
How to Improve Your Credit Score by Becoming an Authorized User
Credit | September 26, 2022
Becoming an authorized user on another person's account can help your credit score. Get the pros and cons and learn how it works.
Here’s What to Do If You Have No Credit History
Building Good Credit | February 9, 2023
A credit history is important for more than just taking out loans. Here's how to build your credit history and get a good credit score.
Personal Loan vs. a Personal Line of Credit
Credit | October 26, 2021
Before you decide between a personal loan vs. personal line of credit, make sure you know the differences -- and what's likely to work for you.

Ready to up your money game?

See my loan options
Why AmONE is Trusted By Millions for Their Loan Needs

Anyone can put together a group of lenders in a marketplace to offer people loans. We go beyond that. We not only partner with some of the best lenders around (like Citi, Rocket Loans, SoFi and so many more), we also work with partners who can help people like you go beyond a one-time loan. We connect you with the money programs you need to help you get real financial solutions in place that allow you to tackle your debt and money problems so you can move forward. Getting out from under debt to financial freedom is daunting and we're ready to help you every step of the way.

AI is the hottest thing around right now, but we know from our decades of experience in the personal finance space that the last thing someone wants to do is talk to a robot when they need real answers. Solving money problems can be stressful and daunting, so don't settle for generic responses and information that offers little real financial insights. Speak to one of our many support specialists who all work from an AmONE office right here in the U.S. and get the answers you really need to make better financial decisions.

We work hard to find loan offers for even the most challenging financial situations. With our large lender marketplace, we know we give everyone the best shot at getting the loan, debt and credit help they're hoping to find. Even when someone's credit is clearly poor or they hold a large amount of debt, we still get our customers in front of lenders to give them the best shot at securing the funds they need. When the unexpected happens and customers are rejected for loans, we still work with them to find other financial solutions that put them on the path to financial recovery so they can keep moving forward toward their money goals.

Anyone can put together a group of lenders in a marketplace to offer people loans. We go beyond that. We not only partner with some of the best lenders around (like Citi, Rocket Loans, SoFi and so many more), we also work with partners who can help people like you go beyond a one-time loan. We connect you with the money programs you need to help you get real financial solutions in place that allow you to tackle your debt and money problems so you can move forward. Getting out from under debt to financial freedom is daunting and we're ready to help you every step of the way.

handicon
Matched with Lenders Who Fit Your Needs

Tell us your situation and we will match you instantly to financial solutions that are right for you.

shieldicon
Get Offers from Only Highly Rated Providers

We work with only the highest-rated partners that provide the best chance to get you the loan you need for your situation.

supporticon
Easy Access to Live Support Based in the U.S.

Get live support when you need it most, through email or phone, and have your questions answered fast.