The 5 Components That Make Up Your FICO Score (and How to Master Each One)

Let’s Talk About Credit Reality

If you’ve ever applied for a mortgage, car loan, or business funding, you’ve probably heard this question:

“What’s your FICO score?”

Your FICO score isn’t just a number — it’s your financial reputation. It tells lenders how well you handle money, risk, and responsibility. The good news? It’s built on five predictable components. Once you understand them, you can control them.

Let’s break down the five factors that make up your FICO score — and how you can start winning in each category.

1. Payment History (35%)

Your payment history carries the most weight in your credit score — 35% to be exact.
This tells lenders one simple truth: Do you pay your bills on time?

Even one late payment can drop your score 50–100 points. Consistency is everything.

Quick Wins:

• Set up autopay for minimum payments on every account.

• Keep a reminder system (or use your CRM) to track due dates.

• If you’ve had late payments, aim for 24 months of perfect history — older lates lose their impact over time.

2. Amounts Owed (30%)

Also known as credit utilization, this factor measures how much of your available credit you’re using.
If your balances are high compared to your limits, your score drops — even if you never miss a payment.

Target Zone:

• Keep your utilization under 30% of each card’s limit.

• For best results, aim for under 10% before your statement closes.

Example:
If your limit is $1,000, keep your balance under $100 to stay in top range.

SEO Tip: Keeping utilization low is one of the fastest ways to improve your credit score.

3. Length of Credit History (15%)

This section looks at the age of your credit — how long your accounts have been open and active.
A longer history = more trust from lenders.

Quick Wins:

• Don’t close old credit cards in good standing.

• Keep older accounts active with a small recurring charge.

• When opening new credit, understand it may slightly lower your average account age.

Patience pays here — credit history is built, not bought.

4. Credit Mix (10%)

FICO wants to see that you can handle different types of credit.
They look for a balance between revolving credit (credit cards, lines of credit) and installment loans (car notes, mortgages, student or personal loans).

Quick Wins:

• If you only have credit cards, consider adding a credit-builder loan or secured personal loan.

• Avoid taking on unnecessary debt — focus on variety, not volume.

Lenders love to see that you can manage multiple credit types responsibly — that’s financial maturity.

5. New Credit (10%)

This category reflects your credit inquiries and recently opened accounts.
Each time you apply for credit, a hard inquiry can temporarily drop your score a few points.

Quick Wins:

• Only apply for new credit with a purpose — part of a larger strategy.

• Limit hard pulls when you’re prepping for a mortgage or business funding.

• Shopping for rates? Do it within 14 days so FICO counts them as one inquiry.

Pro Move: Think Strategy, Not Quick Fixes

Your credit score is a living snapshot of your habits, not your worth.
If it’s not where you want it to be, remember: it’s just data — and data can change.

To recap:

FICO FactorWeightWhat to Focus OnPayment History35%Pay on time, every timeAmounts Owed30%Keep utilization under 30%Length of History15%Keep old accounts openCredit Mix10%Add variety responsiblyNew Credit10%Apply strategically

Final Thoughts: From Credit Score to Credit Power

Improving your FICO score isn’t about tricks — it’s about consistency, structure, and systems.
If you want to learn how to transform your credit into a funding-ready foundation, explore our Credit Freedom Framework™ at Your Legacy Solutions.

We don’t just fix credit — we teach you how to make it work for you.