In a Nutshell
Credit scores are shaped by five main factors: payment history, credit usage, length of credit history, credit mix and recent credit activity. While FICO® and VantageScore models weigh these factors differently, they are all built on the same information in your credit reports. Understanding how these factors work together can help you improve your credit health and anticipate how lenders may view your profile.While many different credit-scoring models exist, most are based on similar information found in your credit reports.
The five main credit score factors that typically influence your scores are payment history, credit usage (utilization), the length of your credit history, your mix of credit accounts and recent credit applications. Though various models may weigh these factors differently, understanding them is an important step toward building and maintaining your credit.
On Credit Karma, the credit score factors you see are based on your VantageScore 3.0 credit reports from TransUnion and Equifax.
We’ll explain how each factor works, compare how FICO® and VantageScore assign weight to them, and share practical steps you can take to strengthen your credit profile.
- What are the five credit score factors?
- How does each credit score factor work?
- Comparing FICO® and VantageScore credit score factors
- Steps to improve your credit scores
- Where can I check my credit score for free?
- Next steps: How to track your credit score factors
- FAQs about credit score factors
What are the five credit score factors?
The five key credit score factors are:
- Payment history – Your record of on-time or missed payments.
- Credit usage (utilization) – The percentage of available credit you’re using.
- Length of credit history – The age of your accounts and how long you’ve managed credit.
- Credit mix – The types of credit you’ve used (e.g., loans, credit cards).
- Recent credit activity – New applications and credit inquiries.
These categories make up the foundation of your scores, though exact weightings differ by model.
How does each credit score factor work?
Payment history
Payment history is typically the single most important credit score factor. Lenders want to know whether you pay your bills on time, and a consistent record of on-time payments strengthens your credit profile significantly.
On the other hand, late payments, defaults, bankruptcies or foreclosures can cause serious and long-lasting damage. Even one missed payment can lower your scores, but the impact may diminish over time if you return to a pattern of paying on schedule.
Credit usage
Credit usage, also called credit utilization, measures how much of your available credit you’re currently using. A high utilization ratio signals greater risk to lenders, while a lower ratio shows you are managing credit responsibly.
For example, regularly maxing out credit cards or carrying high balances can hurt your scores, even if you make your minimum payments on time. Credit-scoring models may also consider utilization across all accounts and on individual cards, so keeping balances low overall and on each card individually is helpful.
Many experts recommend keeping your credit utilization below 30%.
Length of credit history
The length of your credit history reflects how long you’ve managed credit. Models may look at the age of your oldest account, the age of your newest account and the average age across all accounts.
A longer credit history generally works in your favor because they give lenders more evidence of how you’ve managed credit over time. Opening new accounts may shorten your average age, but it could still help your profile if it increases your overall available credit and is managed well.
Credit mix
Credit mix refers to the variety of credit types you’ve used, such as revolving accounts like credit cards and installment loans like mortgages, student loans or auto loans. Having experience with more than one type of credit suggests that you can handle different financial obligations.
Since this factor plays a relatively minor role compared with payment history or credit usage, it’s not typically prudent to take on more debt just to diversify.
Recent credit activity
Recent credit activity considers how often you’ve applied for new credit. When you submit a credit application, the lender makes a hard inquiry on your report, which may cause a small, temporary drop in your scores. Multiple inquiries in a short period can have a bigger effect, though most common scoring models treat rate shopping for mortgages, auto loans or student loans within a set time frame as a single inquiry.
Checking your own credit generates a soft inquiry, which does not affect your scores.
Comparing FICO® and VantageScore credit score factors
The table below shows how FICO® 8 and VantageScore 3.0 — two widely used models — weight these credit score factors:
| Credit score factor | FICO® 8 | VantageScore® 3.0 |
|---|---|---|
| Payment history | 35% | 40% |
| Credit usage (utilization) | 30% | 20% |
| Length of credit history | 15% | 21% |
| Credit mix | 10% | 11% |
| Recent credit activity | 10% | 5% |
| Available credit | 3% |
Because multiple models exist — and because lenders choose which model to use — you may see different scores at different times. In addition, not all lenders report to all three credit bureaus, so your Experian, Equifax and TransUnion reports may contain slightly different information.
These differences help explain why you might see variations in your credit scores across providers, including Credit Karma, which provides VantageScore 3.0 credit scores from TransUnion and Equifax.
Steps to improve your credit scores
- Pay on time, every time. Consistently making payments by their due date is the most effective way to build and protect your credit scores. Setting up reminders or enrolling in autopay can help ensure you never miss a bill.
- Keep your credit usage low. Aim to use less than 30% of your available credit at any time. Lower utilization demonstrates to lenders that you are not overextended and can improve your profile.
- Maintain long-term accounts. Avoid closing older accounts unless absolutely necessary, as keeping them open contributes to a longer credit history. A strong record of responsible long-term use can bolster your scores.
- Diversify gradually. When it fits your financial needs, consider responsibly managing both revolving accounts and installment loans. This demonstrates that you can handle a range of credit obligations.
- Be selective with new applications. Applying for too many new accounts in a short period may lead to unnecessary hard inquiries. Space out your applications to avoid unnecessary score dips.
Where can I check my credit score for free?
Many banks or credit card issuers allow you to check your credit scores for free as long as you have an existing account — you can also check your scores for free on Credit Karma. Though not a bureau or credit reporting agency, Credit Karma provides your VantageScore 3.0 credit scores for free from Equifax and TransUnion.
There are a variety of credit scoring models out there, with VantageScore 3.0 being used by many top banks, lenders and card issuers. And, by accessing your credit scores and reports, you’ll be able to keep track of any changes and better understand the factors impacting your credit.
Next steps: How to track your credit score factors
Improving your credit scores requires patience, consistency, and careful attention to the five credit score factors. The best approach is to commit to healthy financial habits — paying bills on time, keeping your credit usage low, and thoughtfully managing new accounts. Over time, these behaviors create a positive history that strengthens your overall credit profile.
Regular credit monitoring is also important. Reviewing your credit reports from all three major bureaus — Experian, Equifax, and TransUnion — helps you confirm that your information is accurate and complete. You can dispute any errors that you find.
Since not all lenders report to every bureau and reporting dates can vary, it’s normal to see variations between reports and scores. Credit Karma provides free access to your VantageScore 3.0 TransUnion and Equifax credit scores, along with insights into which factors are having the biggest impact.
FAQs about credit score factors
The five main factors are payment history, credit usage, length of credit history, credit mix and recent credit activity. Together, these help determine your overall credit profile.
The 30% rule suggests keeping your credit utilization below 30% of your available credit. While lower is generally better, this is a common benchmark for maintaining healthy scores.
There’s no guaranteed quick fix, but paying down balances and disputing any errors you find on your credit reports can have an outsize impact if time is of the essence to improve your scores.
Scores can differ because not all lenders report to all bureaus, and each bureau may have slightly different information in your report. Additionally, scores may vary depending on which model is used as well as the timing of when the information was reported.
Credit scores typically update when your lenders report new information, often once a month. However, the exact timing depends on your creditors and the scoring model used. You can check your credit scores daily on Credit Karma.