The 5 factors of your FICO score
credit · 4 min read
The weights
- Payment history — 35%. Pay on time, every time.
- Amounts owed (utilization) — 30%. Balance vs limit.
- Length of credit history — 15%. Average age of accounts, oldest account, youngest account.
- Credit mix — 10%. Mix of revolving, installment, mortgage, auto.
- New credit — 10%. Inquiries, new accounts, recent applications.
What you control day to day
Utilization. That's it. Payment history is binary (pay on time or you're screwed), age compounds on its own, mix is lumpy (mortgage or no mortgage), new credit is a side effect of the game.
The churn paradox
Churning cards adds "new credit" hits but the added credit lines lower utilization, which matters more. Net effect: most churners see their score go up, not down, over the first 18 months. It dips 5-10 points per application temporarily.