Credit Scores, Explained
6 min read
The five factors
Most scoring models weigh five things: payment history (~35%), amounts owed / utilization (~30%), length of credit history (~15%), new credit (~10%), and credit mix (~10%). Payment history and utilization dominate — which means paying on time and keeping balances low are the two highest-impact habits you can build.
Why you have more than one score
There is no single 'credit score.' FICO and VantageScore each have multiple versions, and each of the three bureaus (Equifax, Experian, TransUnion) may hold slightly different data about you. A 20–40 point spread between scores is completely normal.
What actually moves the needle
On-time payments every single month, utilization under 30% (under 10% is even better), keeping old accounts open, and limiting hard inquiries. There are no shortcuts — but the fundamentals compound faster than most people expect.
Want this explained for your situation?
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