What your credit score actually measures
Five factors, weighted. Two of them do most of the work.
5 min read · Updated 2026-07-04
The five factors, in order
Payment history (35%) — did you pay on time? Amounts owed (30%) — how much of your available credit are you using? Length of credit history (15%) — how old is your oldest account and your average account? Credit mix (10%) — do you have both revolving and installment credit? New credit (10%) — how many hard inquiries have you had lately? Payment history and utilization together are 65% of the score.
Utilization is the fastest lever
Utilization is your credit card balance divided by your credit limit. Under 30% is fine. Under 10% is great. Because utilization is calculated on the date your issuer reports to the bureau, paying the card down a week before that date can raise your score more than a year of on-time payments.
What does not affect your score
Income, savings balance, employment status, checking activity, and paying with debit cards do not touch your credit score. Neither does checking your own score (a 'soft' pull). Only hard pulls from applying for new credit do — and those fade quickly.
Key takeaways
- Payment history + utilization = 65% of your score.
- Utilization can move your score in a single billing cycle.
- Income and savings do not affect your credit score at all.
Frequently asked
Does closing a credit card hurt my score?
Usually yes: it drops your total available credit (raising utilization) and eventually shortens your average account age. Keep old no-fee cards open and use them once a year.
How often do scores update?
Every time an account reports to a bureau, typically once a month per account. Meaningful movement usually shows in 30–45 days after a real change.
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Educational content only. Not individualized financial, tax, or legal advice.