The biggest factor impacting your credit score is payment history, which makes up 35% of your score. Payment history helps lenders determine how likely you are to repay your debt — it includes whether you’ve made past credit card or loan payments on time, as well as the specifics around any late payments, such as the length of time the payment has been past due and the number of times you’ve been late.
The second most important factor of your credit score is your credit utilization, making up 30% of your score. Your credit utilization ratio measures the amount of debt you’re carrying relative to your credit limits, so keeping balances low or paid off every month will help boost your credit score. Know that only revolving credit accounts, such as credit cards, factor into your credit utilization ratio, while loans, such as auto or student loans and mortgages do not.