5 min read
How credit scores work
What actually moves your score
FICO weighs payment history and balances most heavily. Understanding the factors helps you prioritize what to work on first.
Scores are models, not a single “true” number
Different lenders use different score versions. Apps may show VantageScore or educational FICO estimates that do not match what a mortgage underwriter sees. Treat every score as directional, not absolute.
Improving the underlying report (on-time payments, lower balances, accurate data) matters more than refreshing a free score widget daily.
Where to focus first
Bring any past-due open accounts current if you can. Then work utilization down before statement dates when possible.
Disputing clear reporting errors can help when the report itself is wrong. Disputing accurate negatives you still owe rarely produces a lasting “delete,” and outcomes are never guaranteed.
Quick takeaways
- Payment history (~35%): On-time payments matter most. One recent late mark can outweigh several old positives.
- Amounts owed (~30%): Utilization (balance vs. limit) is key. Under 30% is a common target; under 10% is often better.
- Length of history (~15%): Average age of accounts and oldest account age both count.
- New credit (~10%): Hard inquiries and recently opened accounts can lower scores temporarily.
- Credit mix (~10%): A healthy mix of cards and installment loans can help, but do not open accounts you do not need.
FAQ
Does checking my own score hurt me?
Checking your own credit is typically a soft inquiry and does not hurt your score the way a lender’s hard pull can.
Related guides
- Credit building basics - Secured cards, utilization, and positive history
- How to get your free credit report - AnnualCreditReport.com PDFs for Experian, Equifax, and TransUnion
- Common myths debunked - Ten mistakes that waste time and money
Educational information only. Not legal advice. Outcomes are not guaranteed.