Credit Scores Explained: What Actually Affects Your Score
Your credit score is a 3-digit number that controls your financial life. Here is exactly how it works.
Your FICO score (300-850) is calculated from five factors: Payment history (35%), credit utilization (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). The fastest fix: pay credit card balances below 10% of your limits. A $10,000 limit card with $5,000 balance is killing your score.
The Single Fastest Fix
Pay down credit card balances below 10% utilization. This affects 30% of your score and updates within 30 days. A person with 50% utilization who drops to 10% can see a 30-50 point increase in one month. No other change produces results this fast.