What factors affect my FICO score?

Several key factors influence an individual's FICO score, which is a numerical representation of creditworthiness used by lenders to assess the risk associated with extending credit. One of the most significant factors is payment history, which accounts for approximately thirty-five percent of the score. Timely payments on credit accounts, loans, and mortgages positively impact the score, while late or missed payments can lead to a decrease. Another crucial factor is credit utilization, representing about thirty percent of the score. This reflects the ratio of current credit card balances to total credit limits. Lower utilization rates typically indicate responsible credit management and can enhance one's score. Furthermore, the length of credit history plays a role, accounting for about fifteen percent of the score. A longer, well-managed credit history is generally viewed more favorably. The types of credit used also matter, making up approximately ten percent of the FICO score. A diverse mix of credit accounts, such as revolving credit cards and installment loans, can be beneficial. Lastly, the frequency of new credit inquiries contributes another ten percent to the score. A high number of recent inquiries may suggest greater risk to lenders. Overall, to maintain or improve a FICO score, it is advisable to make payments on time, keep credit utilization low, maintain a mix of credit types, and be cautious with new credit applications. For more specific information regarding one's FICO score, it may be beneficial to consult official resources or look at the latest information available on the FICO website.