Inside your credit score

Five inputs, one number

It is not stored

Your score is computed on demand

There is no number sitting in a drawer. When a lender pulls your credit, a model runs your file and returns a figure, usually on a 300 to 850 scale.

Step 1 · the bureaus

You have three files, not one

Equifax, Experian and TransUnion each hold a separate record. Lenders report to some but not always all, so the three scores rarely match.

Step 2 · the recipe

FICO weighs five things

Payment history and how much you owe make up about two thirds of the score. The rest is history length, new credit, and your mix of account types.

The biggest fast lever

Keep utilisation low

Utilisation is your balances divided by your limits. Under thirty percent helps, under ten is better. It moves the score faster than anything else you control.

The timing trap

Issuers report the statement balance

Pay in full every month and you can still look heavily used, because the model sees the balance on statement day, not what is left after you pay.

What actually hurts

A single late mark costs years

Checking your own score is a soft pull and never hurts. But one payment a full cycle late can erase years of perfect history and linger up to seven years.

The takeaway

Know the levers and the myths

Watch utilisation, pay before the statement, never miss a cycle. And think twice before closing that old card, it can quietly drop your score.