Your credit score is made up of five main components. Here's the breakdown:
| Factor | % of Score | What It Means |
|---|---|---|
| Payment History | 35% | Do you pay your bills on time? |
| Credit Utilization | 30% | How much of your available credit you're using (try to stay under 30%) |
| Length of Credit History | 15% | How long you’ve had your credit accounts |
| New Credit Inquiries | 10% | How many times you’ve recently applied for credit |
| Credit Mix | 10% | Do you have a mix of credit types (e.g., credit cards, auto loans, etc.) |
📌 Example:
If you have a $1,000 credit limit and you spend $900, your utilization is 90% — that will hurt your score. But if you only use $200, that’s a 20% utilization — and that’s healthy.
Key Rule: Always pay on time + keep your balances low = long-term credit health.