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What Really Impacts Your Credit Score?

Published: July 30, 2025

What Really Impacts Your Credit Score?

Confused about credit?
Join our free webinar on August 6 at 6 PM ET to learn how to understand and improve your credit.

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How Your Credit Score Is Calculated

Your credit score—often your FICO® Score—is one of the most important numbers in your financial life. It can influence your ability to get a loan, qualify for a mortgage, or even secure a lower interest rate on your credit card. But how exactly is it calculated?

Let’s break it down.

The 5 Factors That Make Up Your Credit Score

FICO doesn’t disclose its exact formula, but it does reveal the five key components used to determine your score, which ranges from 300 to 850:

  • Payment History (35%)
    Do you pay your bills on time? Lenders want to see a consistent record of on-time payments. Missed or late payments, bankruptcies, and collections can significantly lower your score.
  • Amounts Owed (30%)
    This is also known as your credit utilization ratio. It compares how much credit you’re using to how much you have available. Keeping this ratio below 30% is considered ideal.
  • Length of Credit History (15%)
    The longer your accounts have been open—and kept in good standing—the better. A longer history shows experience in managing credit responsibly.
  • New Credit (10%)
    Every time you apply for new credit, a “hard inquiry” is placed on your report. Too many recent applications can temporarily lower your score.
  • Credit Mix (10%)
    Having a variety of credit types—like a mortgage, auto loan, and credit card—shows you can manage different forms of debt successfully.

What Your Credit Score Doesn't Include

It’s important to note that your credit score is based only on information found in your credit report. That means your age, income, job history, utility payments, and rent typically aren’t included. However, some services like Experian Boost™ can factor in on-time utility and rent payments to help boost your score.

How Often Is Your Score Updated?

Credit scores are generally recalculated once a month as lenders report new data. That means your score is always changing based on your latest financial activity.

Can a Bankruptcy Hurt Your Score?

Yes—significantly. A bankruptcy can remain on your credit report for up to 10 years and can cause a major dip in your credit score. The good news? With consistent on-time payments and responsible credit use, you can rebuild over time.

Stay on Top of Your Credit Report

You’re entitled to one free credit report from each of the three major credit bureaus: Equifax, Experian, and TransUnion. Visit AnnualCreditReport.com to review your reports—and make sure everything is accurate.

Monitor Your Score with USSFCU

As a USSFCU member, you can access your FICO® Score for free through myUSSFCU Online and Mobile Banking. Simply log in and click the “Experian Credit” tab. You’ll get a snapshot of your score, a breakdown of the five key credit factors, and access to an interactive FICO® Score Simulator. Whether you're paying down debt, applying for a new card, or preparing for a major purchase, this tool can help you see how your financial decisions may impact your credit.

Best of all—checking your score through this platform won’t affect your credit.

Want to Learn More About Credit?

Join us for our upcoming webinar:

Understanding Credit: Reports, Scores & How to Improve Them

Wednesday, August 6
6:00 PM ET

Confused about credit? This session explains what’s in your credit report, how it impacts your score, and how to improve both. Learn to spot errors, understand key factors, and take control of your financial future.

Register Now

Article content is provided for information purposes only. 

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