Every article on this subject lists the same five factors. Fewer explain how quickly each responds, which is what actually determines where you should spend your attention.
Ranked by impact and speed
| Factor | Approximate weight | How fast it responds |
|---|---|---|
| Payment history | About 35% | Damage is immediate; recovery takes years |
| Credit utilization | About 30% | One to two billing cycles |
| Length of credit history | About 15% | Years — cannot be accelerated |
| New credit and inquiries | About 10% | Inquiries typically counted for 12 months |
| Credit mix | About 10% | Slow, and rarely worth acting on |
The second row is where most people can make a difference this month. The first row is where most people cause lasting damage.
Payment history
The single largest factor. Three things determine the impact of a missed payment:
- Severity — 30 days late is bad, 90 days is much worse, a charge-off worse still.
- Recency — a delinquency from last month weighs far more than one from four years ago.
- Frequency — a pattern of late payments is worse than one isolated event.
A payment is not reported until it is 30 days past due. Missing a due date by a few days costs a fee, not a credit report entry — a distinction worth knowing on the day it happens.
Credit utilization
Reported revolving balances divided by total limits, calculated overall and per card. Lower is better, and the relationship is not linear — the difference between 90% and 50% is larger than the difference between 20% and 10%.
Three practical points that follow from how it is calculated:
- It is based on the reported balance, usually the statement balance. Paying in full does not guarantee low reported utilization if you spend heavily.
- Paying before the statement closes reduces the reported figure. This is the fastest score lever that exists.
- It has no memory. Last month's high utilization stops counting once a lower figure is reported.
Length of credit history
Measured by the age of your oldest account, your newest, and the average of all of them. Nothing can accelerate this, which is the argument for opening a first account early and keeping it open indefinitely.
Closed accounts in good standing generally remain on your report for around ten years and continue to count while they are there.
New credit
Recent applications and newly opened accounts. A hard inquiry usually costs a few points and is generally counted by scoring models for twelve months, though it stays visible for two years.
Rate shopping for a mortgage or auto loan is treated differently: multiple inquiries within a short window are grouped as one. Credit card inquiries get no such grouping.
Credit mix
Whether you manage both revolving credit and installment credit. It is the smallest factor and never justifies taking on debt you do not need. If you have only credit cards, this is not a problem worth solving deliberately — an auto loan or a mortgage will eventually address it as a side effect of ordinary life.
What has no effect
None of the following are in a credit score:
- Income, savings or net worth
- Employment status or job title
- Age, race, religion, national origin, sex or marital status
- Where you live
- Checking your own credit
- Debit card use
- Rent and utility payments, unless specifically reported by a service that does so
Some of these exclusions are required by federal law. Lenders may consider income separately when underwriting, but it is not part of the score.
