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Credit Mechanics
The six factors that build a credit score
A plain-English breakdown of the components behind most consumer scoring models — and how each one moves the number up or down.
A plain-English breakdown of the components behind most consumer scoring models — and how each one moves the number up or down.
The single heaviest-weighted factor across most models.
Balances relative to limits, measured per-account and overall.
Average age of accounts and the age of your oldest account.
A blend of revolving and installment accounts.
Recent applications and the resulting hard inquiries.
All factors interact — none are evaluated in isolation.
Late payments, collections, and derogatory marks stay visible for years and carry outsized weight because they directly reflect repayment behavior.
Even one 30-day-late mark can measurably affect an otherwise strong file.
Most guidance suggests staying under roughly 30% of available limits.
Unlike payment history, utilization resets each billing cycle — paying down a revolving balance can shift a score within a single reporting period.
Length of history rewards accounts kept open and in good standing over time — a factor that can't be manufactured quickly.
Closing your oldest account can shorten your average credit age.
A mix of cards, loans, and installment accounts, managed responsibly.
Handling different account types — revolving credit cards alongside installment loans — shows lenders a broader repayment track record.
Each new credit application can trigger a hard inquiry. The effect is usually modest and fades within a year, though several in a short window can compound.
Rate-shopping for a single loan type within a short window is often treated as one inquiry.
Use the score simulator to test how each factor moves an estimated score.
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