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What are the five primary factors that affect your FICO® credit score?

Writer's picture: Kim Clark, AE, GADKim Clark, AE, GAD

Your credit score is a crucial indicator of your financial health, influencing lenders' decisions when you apply for loans, credit cards, or other financial products. Understanding the factors that contribute to your FICO® credit score can help you manage and improve it effectively. According to Freddie Mac, the five primary factors that affect your credit score are:


  1. Payment History (35%): This is the most significant factor. It reflects whether you've paid past credit accounts on time. Late or missed payments can negatively impact your score.

  2. Amounts Owed (30%): Also known as credit utilization, this measures the proportion of your credit limits that you're using. High balances relative to your credit limits can lower your score.

  3. Length of Credit History (15%): A longer credit history provides more insight into your financial management habits, which can positively influence your score.

  4. New Credit (10%): Opening several new credit accounts in a short period can be seen as risky behavior and may hurt your score.

  5. Types of Credit Used (10%): Demonstrating the ability to manage a mix of credit types, such as credit cards, mortgages, and auto loans, can benefit your score.


By focusing on these factors, you can take proactive steps to improve your credit score, leading to better financial opportunities in the future.


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