Most lenders use FICO scores, which range from 300 to 850. FICO groups everything on your credit report into five factors, each with a different weight.

1. Payment history (35%)

Whether you pay on time. Late payments, collections, charge-offs and bankruptcies hurt the most, especially recent ones.

2. Amounts owed (30%)

How much of your available credit you’re using, called utilization. Lower is better. Many people aim for under 10% on each card and overall before a big application.

3. Length of credit history (15%)

How long your accounts have been open, including the average age of your accounts and the age of your oldest one.

4. New credit (10%)

How many accounts you’ve opened recently and how many hard inquiries you have. FICO generally only counts inquiries from the last 12 months.

5. Credit mix (10%)

Having different types of credit, like credit cards and installment loans, can help a little.

Your score isn’t one number

You have different scores at each bureau, and lenders use different versions. Card lenders often use FICO 8, many mortgage lenders use older FICO versions, and auto lenders often use FICO Auto Scores, which run from 250 to 900.

Want help with your file? Book a free strategy call, or learn the process yourself with The Approval Room (free for 7 days).

This article is for education only and is not legal or financial advice. Results vary.