What Makes Up a Credit Score
Understanding Credit · 14 min
Lesson
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Credit scores are estimated from five weighted factors: payment history, amounts owed (utilization), length of credit history, credit mix and new credit.
Payment history and utilization together make up roughly two-thirds of a typical score model.
There is no single 'real' score — different bureaus and models can show different numbers for the same person.
Key takeaways
- Payment history and utilization matter most.
- Multiple scores can exist for the same person.
- Building credit takes consistent time.
Glossary
- Utilization
- The percentage of your available credit that you are currently using.
- Credit mix
- The variety of credit types you use (cards, loans, etc.).