FICO Score Factors Explained: What Actually Moves Your Score

The Five FICO Factors

Factor 1: Payment History (35%)

This is the single largest factor. FICO looks at whether you have paid every account on time, and — critically — how recently and how severely you have been late.

What counts as "late"

A payment must be 30 or more days past due to appear as a negative item. Being 29 days late does not appear on your report (though you will likely owe a late fee to the lender). Once you cross 30 days, the lender can report it.

Severity of lates

• 30-day late: Drops a good score (720+) by approximately 60–80 points
• 60-day late: More damaging than 30 — roughly 80–100 point drop from a good score
• 90+ day late: Major derogatory; 100+ point drops common
• Collection / charge-off: Severe; persists for 7 years

Recency matters enormously

A 5-year-old 30-day late has far less impact than one from 6 months ago. FICO weights recent behavior more heavily. If you had lates in the past, the single best thing you can do is establish a long run of on-time payments going forward — the old lates will fade.

How to optimize this factor

Set up autopay for the minimum balance on every account. You can always pay more manually, but autopay eliminates the risk of a forgotten payment costing you 80 points.

Factor 2: Amounts Owed / Credit Utilization (30%)

This factor is about how much of your available revolving credit (credit cards, lines of credit) you are currently using. It is calculated at both the individual card level and the aggregate level.

The utilization tiers

Individual card utilization

Even if your overall utilization is low, having one card nearly maxed can hurt you. FICO evaluates each revolving account individually. Keep every card under 30%, ideally under 10%.

The timing trick

Utilization is calculated from the balance reported to the bureaus — which is typically your statement balance. Pay before the statement closing date (not just the due date) to have a lower balance reported. This is the fastest way to improve your score in a single cycle.

Factor 3: Length of Credit History (15%)

FICO looks at three things: the age of your oldest account, the age of your newest account, and the average age of all accounts. Older is better.

Key implication: never close old accounts

Closing a card — especially an old one — removes that account's contribution to your average age and reduces total available credit (hurting utilization). Even if you never use a card, keep it open. Use it for a small purchase annually to prevent the issuer from closing it for inactivity.

Factor 4: Credit Mix (10%)

FICO rewards having both revolving accounts (credit cards) and installment accounts (auto loans, mortgages, student loans, personal loans). You do not need one of each — having only cards is not catastrophic — but adding a credit-builder loan or reporting your rent can help if you only have revolving credit.

Factor 5: New Credit (10%)

Each hard inquiry (when a lender pulls your report to evaluate an application) costs approximately 3–5 points and stays on your report for 2 years. Multiple inquiries for the same loan type within a 14–45 day window are typically treated as one inquiry by FICO (the rate-shopping window), so applying for auto loans or mortgages at multiple lenders simultaneously is fine.

New accounts also lower your average account age. Plan large applications (mortgage, auto) when your score is already strong, and avoid opening multiple new cards in a short period.

What Has Zero Effect on Your FICO Score

• Your income, employment status, or job history
• Your age, race, sex, religion, or national origin
• Checking your own credit (soft inquiry)
• Your savings or investment account balances
• Rent, utility, or phone payments (unless you enroll in Experian Boost or similar)

Ready to act on this? See our step-by-step improvement roadmap and use the credit utilization calculator to find your optimal payoff target.