What Factors Affect Your Credit Score?

Learn the 5 key elements that shape your credit — and how to take control.

Your credit score isn’t just a number — it’s your financial reputation. Whether you're applying for a car loan, mortgage, or credit card, lenders use your credit score to decide how trustworthy you are with money. But what really affects your credit score?

At Maximum Fico Score, we believe knowledge is power. So here’s a breakdown of the 5 key factors that influence your credit score and practical tips to help you improve your credit score starting today.

1. Payment History – 35% of Your Score

This is the #1 factor in your credit score. Lenders want to know if you pay your bills on time.

✅ What it includes:

• Credit card payments

• Loan payments

• Collections and late payments

📌 Real-Life Example:If you miss a car loan payment by 30 days, that late payment could drop your credit score by 50–100 points!

💡 Credit Tip:Set up autopay or reminders so you never miss a payment. One late payment can haunt your credit for up to 7 years.

2. Credit Utilization – 30% of Your Score

This is how much of your available credit you're using. High balances hurt your score — even if you’re paying on time.

✅ What it includes:

• Your total balances vs. credit limits

• Individual card usage

📌 Real-Life Example:You have a $1,000 limit on a credit card and you spend $800 — that’s 80% utilization, which negatively impacts your score. Ideally, keep it under 30%.

💡 Credit Tip:If your balances are high, make extra payments or ask for a credit limit increase to lower your utilization.

3. Length of Credit History – 15% of Your Score

The longer you’ve had credit, the better. It shows stability and experience with managing credit over time.

✅ What it includes:

• Age of your oldest and newest accounts

• Average age of all your credit accounts

📌 Real-Life Example:Closing your oldest credit card could hurt your score by reducing the average age of your credit.

💡 Credit Tip:Keep old accounts open, even if you don’t use them often — especially if they have no annual fees.

4. Credit Mix – 10% of Your Score

Lenders like to see that you can handle different types of credit responsibly.

✅ What it includes:

• Revolving credit (e.g. credit cards)

• Installment loans (e.g. car loans, student loans, mortgages)

📌 Real-Life Example:Someone with only credit cards may have a lower score than someone who has a mix of credit cards and a car loan.

💡 Credit Tip:Don’t open new accounts just for variety — but if you’re building credit, a secured loan or credit-builder card can help.

5. New Credit – 10% of Your Score

Too many recent credit applications can hurt your score. Each hard inquiry can knock off a few points.

✅ What it includes:

• Hard inquiries from applications

• New accounts recently opened

📌 Real-Life Example:Applying for five credit cards in two weeks might drop your score and make you look risky to lenders.

💡 Credit Tip:Be strategic with credit applications. Only apply when necessary, and space them out when possible.

Final Thoughts: Take Control of Your Credit Today

Now that you know what affects your credit score, you can start making smart decisions to improve it. At Maximum Fico Score, we help you understand your credit report, dispute inaccurate items, and build a strategy for long-term financial success.

🚀 Ready to boost your credit?👉 Book your FREE Credit Consultation now and let our team guide you every step of the way.