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Credit6 MIN READ
How Credit Scores Actually Work
Five factors, weighted. Fix the big ones and ignore the noise.
01
Payment history — 35%
The single biggest factor. On-time payments for six months visibly move your score; one late can undo a year.
02
Utilization — 30%
How much of your credit limit you're using. Under 30% is fine, under 10% is ideal. Paying cards before the statement date is the fastest score lever that exists.
03
Length of history — 15%
Average age of your accounts. Don't close old cards — a 10-year-old card with no annual fee is score gold.
04
Credit mix — 10%
A card plus an installment loan scores slightly better than either alone. Never open a loan just for this.
05
New inquiries — 10%
Each hard pull dings a few points. Rate-shopping within 14 days counts as one inquiry — that's the rule most people miss.
Run the numbers yourself
The Money Tools Suite turns this guide into your numbers.