The 5 Factors
Your FICO score is calculated from five factors. Know them and you know exactly what to fix.
Payment history (35%): Have you paid on time? This is the biggest lever.
Credit utilization (30%): How much of your available credit are you using? Under 30% is good. Under 10% is great.
Length of credit history (15%): Older accounts help. Don't close old cards.
Credit mix (10%): Having both installment loans and revolving credit helps slightly.
New credit (10%): Every hard inquiry temporarily drops your score. Don't apply for new credit unnecessarily.
Two factors — payment history and utilization — make up 65% of your score. Fix those two and your score moves.
The Fix PlanIn Priority Order
- Pull your free credit reportsGo to AnnualCreditReport.com — the only federally mandated free source. Pull all three (Equifax, Experian, TransUnion). Look for errors, collections, and accounts you don't recognize.
- Dispute any errorsFile disputes directly with each bureau online. Errors — wrong balances, accounts that aren't yours, duplicate collections — must be corrected within 30 days. This can add 20–50 points immediately.
- Never miss another paymentSet every account to autopay the minimum. One missed payment stays on your report for 7 years. This is the most important rule. No exceptions.
- Pay down credit card balancesGet utilization under 30% on each card and overall. If you have a $1,000 limit, stay under $300. Under $100 is better. This shows up within one billing cycle.
- Ask for a credit limit increaseCall your credit card company and request a limit increase without a hard inquiry. Higher limit + same balance = lower utilization = score boost.
- Become an authorized userAsk a family member with good credit to add you as an authorized user on their oldest card. You get the history without needing to use the card. Can add 20–50 points.
What Not to Believe
Credit repair companies are almost never worth it. They charge $50–150/month for things you can do yourself for free. The only thing they can remove is inaccurate information — and you can dispute that directly with the bureaus at no cost.
Closing old cards hurts your score. It reduces your available credit (raises utilization) and shortens your average account age. Keep old cards open with a small recurring charge to keep them active.
Checking your own score doesn't lower it. Soft inquiries (you checking, pre-approval screenings) have no impact. Hard inquiries (applying for credit) do. Know the difference.
Going from poor to good takes 6–12 months of consistent behavior. There are no shortcuts that aren't scams. On-time payments and low utilization, sustained over time, will move the needle.
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