Credit Scores Explained: What Moves Them and What Does Not
Two factors account for roughly two-thirds of the score. Most of the anxiety attaches to the other third.
At a glance
Figures checked 1 Sep 2026
What to take away
- Payment history is about 35% of a FICO score and utilisation about 30%.
- Utilisation is measured at the statement date, so paying before that date lowers the reported figure.
- Checking your own credit is a soft inquiry and never affects your score.
- Closing an old card can hurt by reducing available credit and, eventually, average age.
A credit score is a prediction of whether you will fall 90 days behind in the next two years. Everything in the formula serves that single question, which explains why some things matter enormously and others not at all.
| Factor | Weight | What helps |
|---|---|---|
| Payment history | 35% | Never miss a due date |
| Amounts owed / utilisation | 30% | Keep balances under 30%, ideally under 10% |
| Length of credit history | 15% | Keep old accounts open |
| Credit mix | 10% | A mix of revolving and instalment |
| New credit | 10% | Space out applications |
Utilisation timing
Card issuers report your balance on the statement date, not after you pay. Someone who charges $4,000 and pays in full every month can still show 80% utilisation on a $5,000 limit. Paying down before the statement closes reports a lower figure and can move the score in one cycle.
Myths worth dropping
- Carrying a balance does not help your score. It only costs interest.
- Checking your own report is a soft inquiry with no effect.
- Closing a paid-off card often hurts, by cutting total available credit.
- Income is not part of the score, though lenders consider it separately.
You are entitled to free reports from all three bureaus through AnnualCreditReport.com. Check each one — errors appear on one bureau and not another more often than you would expect.
Common questions
Most negative items remain for seven years; Chapter 7 bankruptcy for ten. They lose weight over time well before they fall off.
Roughly: 740 and above gets the best pricing on most products, 670–739 is solid, below 620 limits options significantly.
It is the most straightforward route. A secured card works if you cannot qualify for a standard one.