The five FICO factors
Two of them, payment history and utilization, make up nearly two-thirds of your score.
Payment history
Your track record of paying bills on time. The single biggest factor.
Credit utilization
How much of your available revolving credit you’re using right now.
Length of credit history
The average age of your open accounts and the age of your oldest one.
Credit mix
A healthy variety of revolving accounts and installment loans, like auto loans and mortgages.
New credit
How often you apply for credit. Each lender pull is a hard inquiry.
Checking your own credit is a soft inquiry. It never hurts your score.
Myth: carrying a balance helps your score
It doesn’t. myFICO says you “don’t need to carry a balance or pay interest” to build your score, and Bankrate adds that neither FICO nor the major credit bureaus say carrying a balance is necessary or helpful. Paying in full still counts as using your card, because your issuer reports your statement balance each month whether you pay it off or not. Carrying a balance just costs you interest, and a high balance can push your utilization up and your score down.
myFICO: You don’t need to carry a balance Bankrate: Pay off your card or keep a balance?
Fastest lift for most people: pay revolving balances down before the statement closing date, since that’s usually the balance reported to the bureaus. Check your utilization in the credit checkup.
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Last reviewed: Next scheduled review: January 2027